Instructions

The following table gives the national income and the population of a country for the years 1984 – 85 to 1989 – 90. For each of the following questions choose the best alternative:

Question 54

# The difference between the percentage increase in per capita income and the percentage increase in the population compared to the previous year is highest for the year:

Solution

The per capita of each of the following years is given below.

1984-85 is Rs. 3,098
1985-86 is Rs. 3,482 (increased by 12.42%)
1986-87 is Rs. 3,786 (increased by 8.73%)
1987-88 is Rs. 4,203 (increased by 11.00%)
1988-89 is Rs. 4,857 (increased by 15.55%)
1989-90 is Rs. 5,339 (increased by 9.92%)

The percentage increase in population over the years is fairly constant and varied between 1% and 2%. But the percentage increase in GDP per capita in the year 1988-89 is significantly higher. Hence, the correct answer is 1988-89

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