The average income of a country, total income divided by population, is called:
- Per capita income
- National income
- Gross income
- Median income
Show answer and solution
Correct answer: A. Per capita income
1. Total income is not useful for comparing countries of different size.
2. Average income is per capita income.
3. The World Bank uses it to classify countries.
_Source: syllabus Understanding Economic Development, Chapter 1, Development._