Question 19
National IncomeWhich of the following statements is not true of capital income?
- A.It helps in the assessment of standard of living
- B.It is calculated as National Income/Population
- C.It is calculated as Population/National Income
- D.It is used by the UNO to assess and assist developing countries
- E.It is used as one of the indicators of economic growth.
Show the answer and explanation
Answer: C (It is calculated as Population/National Income)
Explanation
Per capita income = national income ÷ population; dividing population by national income is upside down.