Question

Write short note about these points:- 1. Average Income 2. Per Capita Income 3. National Income Write in less than 100 words each.

Answer 1

Answer:

1. average income : total income of the country divided by its total population

2. per capita income : another name for average income

3. national income : total amount of money earned within a country

Answer 2

Answer:

Explanation:

1. Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population. Per capita income is national income divided by population size.

3. national income means the total value of goods and services produced annually in a country. The following equation is used to calculate the GDP: GDP = C + I + G + (X – M) or GDP = private consumption + gross investment + government investment + government spending + (exports – imports). National income accounts provide information on the pattern of economic activity. These statistics explain various economic and social phenomena. These also help policy-makers in formulating good economic policies both in government and in private industry.

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