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Consider the following statements.
1. We compare the average income which is the total income of the country divided by its total population
2. The average income is also called per capita income
Which of the statements is/are correct?
- a)1 Only
- b)2 Only
- c)Both 1 and 2
- d)None of them
Correct answer is option 'C'. Can you explain this answer?
Most Upvoted Answer
Consider the following statements.1. We compare the average income wh...
- However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn.
- Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population.
- The average income is also called per capita income. In World Development Reports, brought out by the World Bank, this criterion is used in classifying. Countries with per capita income of US$ 12616 per annum and above in 2012, are called rich countries and those with per capita income of US$ 1035 or less are called low-income countries.
- India comes in the category of low middle income countries because its per capita income in 2012 was just US$ 1530 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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Consider the following statements.1. We compare the average income wh...
Understanding Average Income and Per Capita Income
The question revolves around the concepts of average income and per capita income, both of which are crucial for economic analysis. Let's break down the statements given:
Statement 1: Average Income Calculation
- The average income is calculated by dividing the total income of a country by its total population.
- This method provides a general idea of the income distribution and economic well-being of the citizens.
Statement 2: Terminology
- The average income is indeed commonly referred to as per capita income.
- Per capita income is a standard measure used to compare the economic performance and living standards across different regions or countries.
Conclusion: Both Statements are Correct
- Since both statements accurately describe the calculation and terminology of average income, we conclude that:
- Statement 1 is correct.
- Statement 2 is also correct.
Thus, the correct answer is option 'C', which states that both statements are correct.
Importance of Average/Per Capita Income
- Average or per capita income is essential for:
- Assessing economic performance.
- Comparing living standards across countries.
- Formulating policies aimed at reducing poverty and inequality.
In summary, both statements presented in the question are valid, confirming that the average income is calculated as the total income divided by the population and is synonymous with per capita income.
The question revolves around the concepts of average income and per capita income, both of which are crucial for economic analysis. Let's break down the statements given:
Statement 1: Average Income Calculation
- The average income is calculated by dividing the total income of a country by its total population.
- This method provides a general idea of the income distribution and economic well-being of the citizens.
Statement 2: Terminology
- The average income is indeed commonly referred to as per capita income.
- Per capita income is a standard measure used to compare the economic performance and living standards across different regions or countries.
Conclusion: Both Statements are Correct
- Since both statements accurately describe the calculation and terminology of average income, we conclude that:
- Statement 1 is correct.
- Statement 2 is also correct.
Thus, the correct answer is option 'C', which states that both statements are correct.
Importance of Average/Per Capita Income
- Average or per capita income is essential for:
- Assessing economic performance.
- Comparing living standards across countries.
- Formulating policies aimed at reducing poverty and inequality.
In summary, both statements presented in the question are valid, confirming that the average income is calculated as the total income divided by the population and is synonymous with per capita income.
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Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer?
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Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer?.
Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer? for UPSC 2025 is part of UPSC preparation. The Question and answers have been prepared according to the UPSC exam syllabus. Information about Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer? covers all topics & solutions for UPSC 2025 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer?.
Solutions for Consider the following statements.1. We compare the average income which is the total income of the country divided by its total population2. The average income is also called per capita incomeWhich of the statements is/are correct?a) 1 Onlyb) 2 Onlyc) Both 1 and 2d) None of themCorrect answer is option 'C'. Can you explain this answer? in English & in Hindi are available as part of our courses for UPSC.
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