Question : A rising per capita income will indicate better welfare if it is accompanied by:
Option 1: unchanged income distribution overall
Option 2: changed income distribution in favour of the rich
Option 3: changed income distribution in favour of the poor
Option 4: changed income distribution in favour of industrial labour
Correct Answer: changed income distribution in favour of the poor
Solution : The correct option is change income distribution in favour of the poor .
If a growing per capita income is coupled with a modified income distribution that benefits the poor, then this indicates improved well-being. The average per-person income for a region is calculated using the per capita income, which is also used to assess the population's standard of living and quality of life.
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