SSC Economics Sample Paper NCERT Sample Paper-4

  • question_answer
    The growth rate of per capita income at current prices is higher than that of per capita income at constant prices, because the latter takes into account-

    A)  Growth of population   

    B)  Increase in price level

    C)  Growth of money supply

    D)  Increase in wage rate

    Correct Answer: B

    Solution :

    [b] Per capita income at current prices does not show the true picture, as any increase in per capita income may be due to rise in price level without any change in physical output. So, in order to eliminate the effect of price changes, per capita income is also estimated at a constant price.

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