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Q.

If there are 4 members in a family and their total income is Rs 20000, what is the average income of each person?


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a

2000

b

5000

c

3000

d

4000 

answer is B.

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Detailed Solution

Average income = Total income divided by no. of members
= 20000 / 4
=5000.
Thus, the average income of each member will be Rs 5000.
Average income or per capita income is measured by the total income earned by a nation's population divided by the total population for one year. It is a much better and more efficient measure to calculate a country's economic development than total income, which does not consider the fact that countries can have different populations and thus will not serve as an accurate measure of comparison between economic statuses.
 
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