CBSE2026Class Class 10 · Economics1 Marks · Mcq✅ Verified
The meaning of per capita income is:
A. Total population of the country divided by Total income of the country
B. Total population of the country divided by Total wealth of the country
C. Total population of the country multiplied by Total income of the country
D. Total population of the country multiplied by Total wealth of the country
✅ Answer & Solution
✅ Correct Answer: A
Step 1: Recall the definition - per capita income (also called average income) is the total income of the country divided by its total population: $$\text{Per capita income} = \frac{\text{Total income of the country}}{\text{Total population of the country}}$$ Step 2: The concept uses INCOME (not wealth) and uses DIVISION (not multiplication), so options (B), (C) and (D) are ruled out. Step 3: Only option (A) involves total income and total population with division, and is therefore the intended/marked answer. Note for learners: the wording of option (A) reverses the order of the terms; the correct relation is income divided by population. Step 4: The World Development Reports use this average income to classify countries - in 2019 countries with per capita income of US$ 49,300 per annum and above were called rich and those with US$ 2,500 or less were called low-income countries.