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NDA 2016 GAT · General Knowledge · Indian Economy · easy

Per capita income of a country is obtained by dividing the national income by its

Single correct option

Per capita income of a country is obtained by dividing the national income by its
  1. A. Area
  2. B. Labour force
  3. C. Population
  4. D. Gross domestic product
Show answer and solution

Answer: (C) Population

Per capita income is the average income per person, so national income is divided by the total population. Dividing by the labour force would give income per worker. It is only an average and hides inequality in distribution of income, which is a limitation highlighted in economics textbooks.
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Original question written in the NDA 2016 GAT pattern and checked twice for the correct answer. Not an official question paper. How we write and check questions · Corrections policy · Report a mistake