What is the term used for the average earnings of individuals in a nation over the course of one year?

Multiple choice question for Basic of Economics. Select an option, then review the explanation below.

Explanation

Per capita income refers to the average income earned by each person in a country within a year. It is calculated by dividing the total national income by the population. Other options like national income and domestic income represent total aggregates, not averages per individual.

Practice related questions from the same subject.

1.Which of the following best describes deflation?
2.Under what condition can two nations benefit from engaging in international trade?
3.Which of the following represents a legitimate form of currency?
4.Which political ideology is best summarized by the phrase, "From each according to his ability, to each according to his needs"?
5.Which type of currency experiences a decline in its exchange rate due to a continuous balance of payments deficit?

What is the term used for the average earnings of individuals in a nation over the course of one year?

Explanation

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