If the real income of Developing Island rises from $120,000 in 2005 to $160,000 in 2006, and its population grows from 1,000 to 1,100 during that time, approximately how much did the real income per person increase?

Characteristics and Institutions of Developing Countries MCQs for PPSC, FPSC, NTS, and Pakistan government job tests. Select an option below, then read the explanation.

Characteristics and Institutions of Developing Countries

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Characteristics and Institutions of Developing Countrieseconomics-mcqs › characteristics-and-institutions-of-developing-countries
Published
2 Jun 2019
Last updated
28 May 2026

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Explanation

To find the increase in real income per capita, first calculate the income per person for each year. In 2005, income per capita was $120,000 ÷ 1,000 = $120. In 2006, it was $160,000 ÷ 1,100 ≈ $145.45. The difference is approximately $25, which represents the increase in real income per person.

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