Question

Differentiate between National Income and Per Capita Income.

Answer 1

National Income is the aggregate of factor incomes earned by all the factors of production (that are normal residents of a country) within the domestic territory and abroad. It is also known as Net National Product at Factor Cost (NNP FC ). While, ​Per capita Income is the average income earned per person in an economy during an accounting period. It is estimated by the following formula.
$Percapitaincome=\frac{NationalIncome}{TotalPopulation}$