Per capita income is obtained by dividing National Income by

Priyanka Tomar • 35.28K Points
Coach Economic

Q. Per capita income is obtained by dividing National Income by

(A) Total working population
(B) Total population of the country
(C) Area of the country
(D) Volume of capital used

Correct Answer - Option(B)

Explanation by: Priyanka Tomar

Per capita income or average income or income per person is the mean income within an economic aggregate, such as a country or city.

It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross National Income) and dividing it by the total population.

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