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Q.

Choose whether the given statement is true or false.

Total income is the same as the per capita income.

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a

True

b

False

answer is B.

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Detailed Solution

The above statement is false.
Total income is not the same as per capita income. The total income is how much all the residents of a country earn. It sums up the incomes of every person. Per capita income is the total income of a country divided by its population. It is also called the average income. The World Bank compares and ranks countries across the globe using the per capita income criteria. However, averages may not be the best way to compare countries or states because they hide the reality.

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