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.
The total income of the country divided by its total population is known as | |||
Right Option : B | |||
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Average income of the country is also termed as | |||
Right Option : A | |||
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The value of goods and services produced by residents of a country and the value of their property is called_________. | |||
Right Option : C | |||
View Explanation |
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