Question

DEFINE - NATIONAL AND PER CAPITA INCOME

Answer 1

Hey Shravan,

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.
$\mathrm{Per}\mathrm{capita}\mathrm{income}=\frac{\mathrm{National}\mathrm{income}}{\mathrm{Total}\mathrm{population}}$