Consider the following statements regarding the utility of 'Total Income' as a development indicator: 1. It is the most appropriate measure for comparing the economic well-being of citizens across different countries. 2. It fails to account for the differences in population size between countries. 3. It is calculated by summing the incomes of all residents of the country. Which of the statements given above is/are correct?

Correct Option The correct option is 2 and 3 only. Explanation Total Income represents the aggregate earnings of a country. While it provides an estimate of the overall economic size of a nation, it is often insufficient as a standalone indicator for development or standard of living because it does not factor in demographic variations. Statement-wise Analysis - Statement 1 is Incorrect. Total Income is not the most appropriate measure for comparing the economic well-being of citizens across different countries. Since countries have different population sizes, comparing total income does not indicate how much the average person earns. For such comparisons, Per Capita Income (Average Income) is the standard measure. - Statement 2 is Correct. Total Income fails to account for differences in population size. A country with a large population may have a high total income, but the income available per person might be very low. Conversely, a smaller country with a lower total income might have a higher standard of living if the population is small. - Statement 3 is Correct. By definition, the Total Income of a country is calculated by summing the incomes of all its residents. This aggregate figure represents the total value generated by the residents of the nation. Key Takeaway Total Income measures the absolute economic size of a country, whereas Per Capita Income adjusts for population size, making it the correct metric for comparing the average economic well-being between nations.

NCERT Class 10 Economics — Chapter 1: Development

mcqmedium

Consider the following statements regarding the utility of 'Total Income' as a development indicator:

It is the most appropriate measure for comparing the economic well-being of citizens across different countries.
It fails to account for the differences in population size between countries.
It is calculated by summing the incomes of all residents of the country.

Which of the statements given above is/are correct?

Official previous-year question

Verified 1 Aug 2026.

Options

A2 and 3 only
B2 only
C1, 2 and 3
D1 and 2 only

Did you get this right?

Solution

Correct Option

The correct option is 2 and 3 only.

Explanation

Total Income represents the aggregate earnings of a country. While it provides an estimate of the overall economic size of a nation, it is often insufficient as a standalone indicator for development or standard of living because it does not factor in demographic variations.

Statement-wise Analysis

Statement 1 is Incorrect. Total Income is not the most appropriate measure for comparing the economic well-being of citizens across different countries. Since countries have different population sizes, comparing total income does not indicate how much the average person earns. For such comparisons, Per Capita Income (Average Income) is the standard measure.
Statement 2 is Correct. Total Income fails to account for differences in population size. A country with a large population may have a high total income, but the income available per person might be very low. Conversely, a smaller country with a lower total income might have a higher standard of living if the population is small.
Statement 3 is Correct. By definition, the Total Income of a country is calculated by summing the incomes of all its residents. This aggregate figure represents the total value generated by the residents of the nation.

Key Takeaway

Total Income measures the absolute economic size of a country, whereas Per Capita Income adjusts for population size, making it the correct metric for comparing the average economic well-being between nations.

Your note

More from Chapter 1: Development

Consider the following statements regarding the Human Development Index (HDI): 1. It considers only the nutritional status of adults to determine the health component. 2. It compares countries based on educational levels, health status, and per capita income. 3. It is used by the World Bank to classify countries into rich and low-income categories. Which of the statements given above is/are correct?

medium

With reference to the developmental goals of different categories of persons, consider the following statements: 1. Developmental goals often vary as different persons can have different developmental aspirations. 2. Developmental goals of one individual are always compatible with the developmental goals of others in society. 3. Industrialists and tribals may have conflicting perspectives regarding the construction of dams. Which of the statements given above is/are correct?

medium

Consider the following statements regarding 'Renewable Resources': 1. Renewable resources are those which are formed over geological time scales and cannot be replenished by nature. 2. Renewable resources like solar energy are inexhaustible and cannot be overused. 3. Groundwater is an example of a renewable resource. Which of the statements given above is/are correct?

medium

With reference to the Body Mass Index (BMI), consider the following statements: 1. It is primarily used to measure the intelligence quotient of an adult. 2. It is calculated by dividing the weight in kilograms by the square of the height in meters. 3. This indicator is exclusively used for children under the age of 5. Which of the statements given above is/are correct?

medium

Consider the following statements regarding 'Non-renewable resources': 1. These resources have a fixed stock on earth which cannot be replenished. 2. New resources are never discovered; we only use what is currently known. 3. Crude oil is an example of a non-renewable resource. Which of the statements given above is/are correct?

medium

Keep practising Chapter 1: Development

Work through every question from this NCERT chapter.

Browse all NCERT Class 10 Economics chapters

Correct Option

The correct option is 2 and 3 only.

Explanation

Statement-wise Analysis

Statement 1 is Incorrect. Total Income is not the most appropriate measure for comparing the economic well-being of citizens across different countries. Since countries have different population sizes, comparing total income does not indicate how much the average person earns. For such comparisons, Per Capita Income (Average Income) is the standard measure.
Statement 2 is Correct. Total Income fails to account for differences in population size. A country with a large population may have a high total income, but the income available per person might be very low. Conversely, a smaller country with a lower total income might have a higher standard of living if the population is small.
Statement 3 is Correct. By definition, the Total Income of a country is calculated by summing the incomes of all its residents. This aggregate figure represents the total value generated by the residents of the nation.