Q1. Sudden decrease of birth rate would cause
(a) Increase in investment
(b) Increase of savings
(c) Increase in per capita income
(d) Increase in production
(UPSC Prelims 1979)
Answer: (c) Increase in per capita income
Explanation: A decline in birth rate reduces the population growth, leading to higher per capita income as the same resources are distributed among fewer people. This can improve living standards and economic efficiency.
Q2. What is the likely impact of decrease of population on economy ?
(a) Increase in per capita income
(b) Decrease in per capita income
(c) Increase in investment
(d) Decrease in savings
(UPSC Prelims 1979)
Answer: (a) Increase in per capita income
Explanation: A decline in population means resources are shared among fewer people, leading to a rise in per capita income. It can improve living standards, though it may also pose challenges for labor supply and growth.
Q3. Highest per capita income is in
(a) Punjab
(b) West Bengal
(c) Tamil Nadu
(d) Gujarat
(UPSC Prelims 1980)
Answer: (a) Punjab
Explanation: In 1980, Punjab had the highest per capita income, attributed to its agricultural prosperity, especially due to the Green Revolution.
Q4. The average rate of increase of per capita income in 1978-79 was
(a) 4%
(b) 4.7%
(c) 6%
(d) 5.1%
(UPSC Prelims 1981)
Answer: (d) 5.1%
Explanation: In 1978–79, India recorded an average per capita income growth rate of 5.1%, reflecting modest economic progress. This figure indicates the average increase in income per person, factoring in population growth and national income trends.
Q5. Which of the following countries has highest per capita income ?
(a) U.S.A.
(b) Saudi Arabia
(c) Denmark
(d) Kuwait
(UPSC Prelims 1987)
Answer: (a) U.S.A.
Explanation: During the mid-1980s, the United States had the highest per capita income among the listed countries, driven by its diverse economy, technological advancement, and global trade dominance.