Question

5. Why are national income and per-capita income considered as indicators of development?

Answer 1

Here Is Your Ans ⤵

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Because :-

➡ National income and per capita income indicates the overall growth of the economy in terms of goods and services produced in a year and distributed among its population.

➡ Financial soundness of the economy is indicated by the income earned by the people of the country.

➡A sound economy with higher per capita income and national income provides better standard of living to the people of the country.

➡However, the distribution of income may be uneven in the economy why indicates a bigger gap between rich and poor.

➡Thus, national income and per capita income can be used as I comparative tools to assess the growth of one economy as against the other

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