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Q.

Choose the given statement is True/False:

Average income is the total income of the country.

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a

True

b

False

answer is B.

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Detailed Solution

It is false. The average income or per capita income is defined as the average total income earned by the country and the total population of the country. It can be calculated as dividing the total income earned by the country by the total population of the country. The average per capita income is the most important criterion for comparing and contrasting different nations. Based on annual income, it is decided whether a country is rich or poor. If the country has a total income keeping the population constant, the average income will be more and vice versa.

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