Q1. What is the total income of a country divided by its total population called? Choose the most appropriate option from below.
A National Income
B Per Capita Income Correct
C Gross Income
D Net Income
Explanation
Per capita income is obtained by dividing a country's total income by its total population, so it shows the average income per person. National income is the aggregate income earned by the economy, not divided by population. Gross income refers to income before deductions or depreciation-related adjustments, depending on context. Net income is income after relevant deductions. Since the stem specifically asks for total income divided by total population, the exact economic term is per capita income.