Is it possible for per capita income to go up while median income is going down?
A)Yes, this is a sign of growing unemployment.
B)Yes, this is a sign of growing inequality.
C)No, when per capita income goes up median income must as well.
D)Yes, these two measures are not related to each other.

Question

Quizplus · Accepted Answer

When per capita income goes up and median income goes down, you can conclude that inequality has increased. Consider the following example:
Ten people each make $50,000. If nine of those people find their salaries reduced to $25,000 but one person gets a raise to $500,000, the average income has gone from $50,000 to nearly $75,000 while the median has gone down from $50,000 to $25,000. Per capita income is the mean per person income in a population.

Is It Possible for Per Capita Income to Go Up