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Read the source given below and answer the questions that follows:  

For comparing countries, their income is considered  to be one of the most important attributes.  Countries with higher income are more developed  than others with less income. This is based on the  understanding that more income means more  of all things that human beings need. Whatever  people like, and should have, they will be able to  get with greater income. So, greater income itself is  considered to be one important goal.  The income of the country is the income of all  the residents of the country. This give us the total  income of the country. However, for comparison  between countries, total income is not such a  useful measure. Since, countries have different  populations, comparing total income will not tell  us what an average person is likely to earn. Are  people in one country better off than others in a  different country? Hence, we compare the average  income which is the total income of the country  divided by its total population. The average income  is also called per capita income. In World Development Reports, brought out by  the World Bank, this criterion is used in classifying  countries. Countries with per capita income of US$  12,056 per annum and above in 2017, are called  rich countries and those with per capita income  of US$ 955 or less are called low-income countries.  India comes in the category of low middleincome countries because its per capita income  in 2017 was just US$ 1820 per annum. The rich  countries, excluding countries of Middle East and  certain other small countries, are generally called  developed countries.  Human Development Report published by UNDP  compares countries based on the educational levels  of the people, their health status and per capita  income. 

Question (i)

Per capita income is also called as: 

  (a) Average income

  (b) Total income 

  (c) Marginal income  

 (d) None of the above 


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Davneet Singh

Davneet Singh has done his B.Tech from Indian Institute of Technology, Kanpur. He has been teaching from the past 13 years. He provides courses for Maths, Science, Social Science, Physics, Chemistry, Computer Science at Teachoo.