Question

Total Gross National Product divided by the total population is known as which
of the following in economics?
1) Statutory Liquidity Ratio
2) Inflation
3) National Income
4) Deflation
5) Per Capita Income

Answer 1

Its called the per capita income or average income

Answer 2

Answer:

Total Gross National Product divided by the Total Population is known as Per Capita Income.

Option (5)

Explanation:

Per Capita Income (PCI) or the average income is the economic term which referred to the average income of the nation’s population per person in a given specified year.

The PCI act as a standard for the measurement of stability and wealth of a country. If PCI increases it shows that the living standard of the average population of the nation arise and if the PCI is showing a decline from the set standard then this indicated a decrease in the living standard of the average population and the decline reason is necessary to be searched, analysed and proper steps should be taken by any ruling governments of that particular nation to stabilize their economy.