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HCS (Haryana)Prelims2026General Studies
Question
Given below are two statements: Statement I : Per-capita income is not sufficient to measure the development. Statement II : Per-capita income is defined as total population divided by total income. In the light of the above statements, choose the correct answer from the options given below:
Options
- A Both Statement I and Statement II are true.
- B Both Statement I and Statement II are false.
- C Statement I is true but Statement II is false.
- D Statement I is false but Statement II is true.
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Correct Answer
C Statement I is true but Statement II is false.
Model Answer
- Per capita income is an average and it conceals the inequality in the distribution of income. It also says nothing about health, education, nutrition, environmental quality or the security and dignity of the people, which are equally important attributes of development.
- That is why the UNDP uses the Human Development Index, which combines per capita income with life expectancy and educational attainment. Hence, statement I is true.
- Per capita income is obtained by dividing the total income of a country by its total population, and not by dividing the population by the income. The statement has reversed the formula. Hence, statement II is false.
- The World Development Report classifies countries into low, middle and high income countries on the basis of per capita income.