Paper 1 · real per capita income
The table shows national income, rates of population and inflation changes for countries A, B, C and D. Which country, A, B, C or D experienced a rise in real per capita income?
AA
BB
CC
DD
Explanation: Country C: National income rises from 1000 to 1100 (10% rise). Inflation is 6%, so real income rises by about 4%. Population falls by 6%, so real per capita income rises significantly. The marking scheme gives answer C.
ZIMSEC Economics Paper 1, November 2009, Q31
