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Q.

Choose if the given statement is True/False.


Average income is also referred to as per capita income.


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a

True

b

False  

answer is A.

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Detailed Solution

The given statement is true. Average income or per capita income is obtained by dividing a country's total income by that country's total population. It is used in assessing the economic development of a country. One of the disadvantages of using average income for comparing countries is that it does not tell us how the income is distributed.
 
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