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Q.

Choose whether the statement is true/false:

Per capita income gives a picture of how income is distributed among individuals.

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a

True

b

False

answer is B.

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Detailed Solution

The above statement is false.
Per capita income only shows the average income of the citizens but not the distribution of income. In an economy, there is an income gap between various sections of society due to their occupation, education level, and many other reasons. Per capita income is calculated by dividing the country's total revenue by population. Another method or a confidential survey must opt to know the society's income distribution. Hence the correct statement would be, Per capita income not gives a picture of how income is distributed among individuals.

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