Question

Which of the following statements is/are correct with respect to per capita income?

• A. Per capita income indicates the income earned per person.
• B. With increasing national income, per capita income always increases.
• C. Per capita income increases when the rate of growth of national income is more than the rate of growth of the population.
• D. The population of a country does not have any relation with its per capita income.

Answer 1

Answer: (A), (C)

Per capita income increases when the rate of growth of national income is more than the rate of growth of the population.

Per capita income is an important economic indicator that indicates the income earned per person. It is the total income divided by the total population of a country. It increases when the rate of growth of national income is more than the rate of growth of the population.