Comparison of Development through National Income


 
 
Concept Explanation
 

Comparison of Development through National Income

Comparison through National Income: National Income is the income of all the residents of the country over a period of time and is also known as total income. Countries with higher total incomes are considered to be developed. However this is not a useful measure as countries have different populations and comparing total income will not state the average amount earned by a person.

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Sample Questions
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Question : 1

Analyze the following statements regarding the limitations of National Income as a development measure:

A) National Income measures the average income earned per person accurately across different countries.

B) Relying solely on National Income can overlook disparities in income distribution within a country.

Right Option : C
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Question : 2

Which of the following is the correct term for calculating National Income at constant prices?

Right Option : C
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Question : 3

Which of the following is included in the National Income of a country?

Right Option : D
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Explanation
 
 


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