Question
Which of the following statement is correct about the
situation in the economy?Solution
None of the above situation is necessary to happen in an economy: · an increase in national income will not lead to rise in per capita income if the population increases at a higher pace than the national income · conversely, if increase in population is less than the increase in national income, the per capital income will not fall but will rather increase · the welfare of the people depends not only on increase in national income but also on the distribution of the national income
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