If national income grows at twice the rate of population growth,

Question

Quizplus · Accepted Answer

If national income grows at twice the rate of population growth, it means that the income per person (per capita income) is increasing faster than the population is growing. This does not necessarily mean per capita income will double each year, but its growth rate will be higher than if national income were growing at the same rate as population growth. The statement directly implies that the growth rate of per capita income is increasing, but the specific doubling of per capita income each year (as stated in option C) is not implied by the given condition. The correct interpretation is that the growth rate of per capita income is accelerating relative to population growth, but option E is mistakenly chosen based on the misunderstanding of the statement. The correct explanation should clarify that while per capita income increases, the specific patterns of doubling or the exact rate of increase in per capita income are not detailed in the given options.

If National Income Grows at Twice the Rate of Population