Comparison of Development through Per Capita Income


 
 
Concept Explanation
 

Comparison of Development through Per Capita Income

Comparison through Per Capita Income: Per capita income gives a better comparison. It is calculated by dividing total income of country (GDP) by its total population. It is also called average income. Average income may be a better parameter than total income for comparison, but it has also drawbacks as it hides disparities. e.g. when a small section of people has very high income, the average income also gets high and do not gives proper idea about the actual situation.

In UAE, Saudi Arab, a very small group of very rich people earn more than 90% of the total income and consists about less than 2% of the population. Though average income is very high for UAE but serious economic disparity is seen throughout the country.

Sample Questions
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Question : 1

Per capita income is calculated in which of the following currency?

Right Option : A
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Explanation
Question : 2

Average income of the country is also termed as

Right Option : A
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Explanation
Question : 3

The total income of the country divided by its total population is known as

Right Option : B
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Explanation
 
 


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