DISTINCTION BETWEEN – NATIONAL INCOME AND PER CAPITA INCOME

 

NATIONAL INCOME

PER CAPITA INCOME

“National income is the money value of goods and services produced in the economy in the current year”. “Per capita income is the average income of a nation” 
Factors determining –The contribution of different sectors or

The contribution of different factors of production determine national income

Factors determining –The national income and population determine national income
National income increases when there is full and optimum utilization of nation’s resources. Per capita income increases when the rate of growth of national income is greater than the rate of growth of population.
National income indicates rate of economic growth of the country Per capita income indicates the standard of living and the economic welfare of a country
National income measures the performance of a nation’s economy in a year Per capita income measures the human development index of a nation.
DATA-2011 DATA-2011
Posted in Indian Economy