Question

Which of the following statements is true regarding per capita income?

• A. Per capita income = National income / Number of months in a year
• B. Per capita income = National income / Number of days in a year
• C. Per capita income = National income / Total population of a country
• D. Per capita income = National income / Total population of all world countries

Answer 1

The correct option is C Per capita income = National income / Total population of a country

Per capita income represents the average income earned per person in a given country in a specified year. It is calculated by dividing the national income of a country by its total population.

It can be expressed as

Per capita income = National income / Total population of a country