ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -The correct answer is Per capita income. Per capita income: It is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population.

Detailed explanation-2: -The correct option is A True Assertion (A): Per capita income is a better indicator than total income to compare the development of nations. Reasoning (R): Per capita income addresses how income is distributed among people.

Detailed explanation-3: -Gross Domestic Product (GDP), a widely used indicator, refers to the total gross value added by all resident producers in the economy. Growth in the economy is measured by the change in GDP at constant price.

Detailed explanation-4: -Per capita income refers to money or income earned per person in a region or state. However, per capita income can sometimes be misleading because wealth is unequally distributed. Thus, per capita income may not reflect the actual living conditions of the people.

Detailed explanation-5: -GDP per capita is an important indicator of economic performance and a useful unit to make cross-country comparisons of average living standards and economic wellbeing.