Which of the following statements is TRUE regarding the relationship between Per Capita Income and population growth?

medium Q8 of 15

Economic Awareness - Sectors of Indian Economy

AHigh population growth always increases Per Capita Income

BPer Capita Income increases if population growth exceeds income growth

CPopulation growth has no effect on Per Capita Income

DPer Capita Income decreases if population grows faster than national income

Step-by-Step Solution

Step 1: Recall formula
Per Capita Income = Total National Income ÷ Population.
Step 2: Analyze impact
If population grows faster than income, the denominator increases more, reducing Per Capita Income.
Final Answer:
Per Capita Income decreases if population grows faster than national income → Option D
Quick Check:
Per Capita Income decreases if = correct ✅

Quick Trick: Compare growth rates of income and population to predict Per Capita Income.

Common Mistakes:

Master "Sectors of Indian Economy" in Economic Awareness

Start learning the concept with an interactive lesson.

Want More Practice?

15+ quiz questions · All difficulty levels · Free

More Economic Awareness Quizzes