what is national income | Per capita income ?



National income 

National income is the value of all goods and services produced by a country in the financial year. Actually the national income of a country shows the economy of that country. National income means the total value of goods and services produced during financial year in a country.




Per capita income

Per capita is a Latin term which means “by heads” or “for each head/person’’ i.e. per individual/person. Per capita income is directly related to the income of a person. This is through which the income of each person in a country is detected. It can be judge by living standard and personal economic status of the people. The per capita income is derived by dividing the total population in the country’s income (national income).

 





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National income and per capita income reveals the economy of a country. If a country’s national income and per capita income is high then it is called a developed country. On the contrary if a country’s national income and per capita income is low then it is called a developing country.              




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