The figure given below shows the Lorenz curves of two countries (Country A and Country B).Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)

-Per capita income is calculated as:

Question

The figure given below shows the Lorenz curves of two countries (Country A and Country B).Figure 19.2
Total income (cumulative percentage)
Total population (cumuative percentage)
 
-Per capita income is calculated as:

Quizplus · Accepted Answer

Per capita income is calculated as national income divided by the number of people in the country. This is because per capita income represents the average income per person in the country. In this case, Country A and Country B have different Lorenz curves, indicating different levels of income inequality. Therefore, to compare the two countries' standard of living or economic development, we need to calculate their per capita income using the total national income and the total population.

The Figure Given Below Shows the Lorenz Curves of Two