Question

Per Capita Income =

• A. National Income + Population
• B. Population \( \times \) National Income
• C. National Income \( \div \) Population
• D. Population \( \div \) National Income

Hint:

- Per Capita Income (PCI): Average income per person in a population. - Formula: \( \text{PCI} = \frac{\text{Total National Income}}{\text{Total Population}} \). - It is an indicator of the economic well-being and standard of living of a country's residents. - National Income can be represented by various aggregates like Gross National Income (GNI), Net National Product (NNP) at factor cost, etc., depending on the specific definition used.

Answer 1

The Correct Option is C

Step 1: Define Per Capita Income.
Per Capita Income (PCI) is a measure of the average income earned per person in a given area (city, region, country, etc.
) in a specified year.
It is calculated to understand the average economic well-being of the population.

Step 2: Recall the formula for Per Capita Income.
Per Capita Income is calculated by dividing the total national income (or sometimes Gross Domestic Product - GDP, or Gross National Income - GNI) of a country by its total population.
\[ \text{Per Capita Income} = \frac{\text{National Income}}{\text{Total Population}} \]
Step 3: Match with the given options.
Option (3) "National Income \( \div \) Population" correctly represents the formula for Per Capita Income.
This matches option (3).