A) National income has increased but per capita income has decreased.
B) National and per capita incomes have both increased fast
C) National income has increased and per capita income has also increased but at a slower rate
D) National income and per capita income have increased every year.
Correct Answer: C
Solution :
[c] Economic growth usually refers to quantitative rise in National Income and Per Capita Income of an economy during a period of time. The real national income of India has increased at an annual average rate of 4.5 per cent. The rate of growth initially decelerated over the years but has subsequently accelerated continuously. Per Capita Income is considered a better index of economic growth. In 1950-51 India's Per Capita Income at 1999-2000 prices was Rs. 5,708. Since then it rose to Rs. 19, 331 in 2004-05 and in 2009-10 it stood at Rs. 33, 731. Per capita income (at 2004-05 prices) would be Rs. 39, 961 in 2013-14, against Rs. 38,856 in the previous fiscal, according to the latest data on national income. There has been more than fourfold increase in real Per Capita Income during the planning period. Growth in Per Capita Income was much less than growth in National Income because of high population growth rate. The Planning Commission expects that country's Per Capita Income would be doubled in the next 20 years.
You need to login to perform this action.
You will be redirected in
3 sec
