Question

Write a short note on national income and per capita income.

Answer 1

Instructions:
Establish the meaning of national income and per capita income.

Solution:

• National income:
  • National income refers to the total income earned by a country’s people and businesses in a year.
• Per capita income:
  • Per capita income represents the average amount of income of the population of a nation in a given time period. Per capita income is calculated by dividing the total national income by the total population of a country.