Economic Awareness - Sectors of Indian Economy
Which of the following formulas correctly represents Per Capita Income?
Which of the following formulas correctly represents Per Capita Income?
easy Q2 of 15
Step-by-Step Solution
Step 1: Recall the formula
Per Capita Income is calculated using Net National Income at factor cost divided by population.Step 2: Evaluate options
Gross Domestic Product ÷ Total Population uses GDP which is not standard for Per Capita Income in India; Total Government Expenditure ÷ Total Population relates to government expenditure; Gross National Product at market price × Total Population incorrectly multiplies GNP by population.Final Answer:
Net National Income at factor cost ÷ Total Population → Option BQuick Check:
Per Capita Income = NNI at factor cost ÷ Population ✅
Quick Trick: Use NNI at factor cost for accurate Per Capita Income calculation in India.
Common Mistakes:
- Mistaking GDP or government expenditure for Per Capita Income formula.
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