Question

Distinguish between National Income and Capita income ?

Answer 1

National Income is the aggregate of factor incomes earned by all the factors of production (that are normal residents of a country) within the domestic territory and abroad. It is also known as Net National Product atFactor Cost (NNP FC ). While, ​Per capita Income is the average income earned per person in an economy during an accounting period. It is estimated by the following formula.Per capita income = National Income Total PopulationAs far as real per capita income isconcerned, it is calculated using the given formula,Real per capita income = Real incomeTotal PopulationAn increase in real per capita income leads to an increase in theper capita availability of good andservices in the economy. An increase in per capita availability of goods and services in turn leads to an increase in the standard of living of the people. Thus, we can say that a rise in real per capita income leads implies a rise in the welfare of the people in the country. i hope its helpful for u so plzz marks as brillant answer.