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What different information does per capita income provide compared with national income?

Answer and explanation

Correct answer: The average income per person

National income measures the total income generated by an economy during a period. Per capita income divides national income by the population and therefore gives an average income per person. It is useful for comparing average economic resources across countries or years, although it does not reveal income distribution or inequality. Hence option B is correct.

Related tags

Per Capita IncomeNational IncomeAverageGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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