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    Question

    The total income of the country divided by its total population is termed as? 

    A GDP Correct Answer Incorrect Answer
    B Annual income Correct Answer Incorrect Answer
    C Per capita income Correct Answer Incorrect Answer
    D Real income Correct Answer Incorrect Answer

    Solution

    Per capita income or average income measures the average income earned per person in the given area in a specified year. It is calculated by dividing the area's total income by its total population. In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with a per capita income of US$ 12,056 per annum and above in 2017, are called rich countries. Countries with a per capita income of US$ 955 or less are called low-income countries. India comes in the category of low-middle-income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of the Middle East and certain other small countries, are generally called developed countries.

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