Question

Which of the following is true regarding national income?

• A. Higher the population, higher the national income.
• B. Higher the national income, higher the development.
• C. Higher the national income, higher the per capita income.
• D. Higher the national income, higher the population.

Answer 1

The correct option is B Higher the national income, higher the development.

National income is deemed an important indicator of economic development. Therefore, a high national income indicates development. However, when countries have a high population growth rate, economic development becomes very slow. Hence, comparing the economic development of countries with different levels of population will be incorrect.