1. Total National Income

Meaning:
Total National Income refers to the total monetary value of all income earned by the residents of a country during a specific period (usually a year). It
includes income from wages, profits, rents, interest, and other sources.

Explanation:

• Total National Income is
  typically measured as Gross National Income (GNI) or Net
  National Income (NNI):
• GNI includes all income earned
  by residents both domestically and abroad.
• NNI adjusts GNI by subtracting
  depreciation of physical assets.
• It provides an overview of
  the economic performance of a nation.
• A higher total national
  income indicates a more productive and wealthier economy.

2. Per Capita Income

Meaning:
Per Capita Income (PCI) is the average income of a person in a country,
calculated by dividing the total national income by the population.

Explanation:

• Formula:
  Per Capita Income=Total National Income Total Population\text{Per
  Capita Income} = \frac{\text{Total National Income}}{\text{Total
  Population}}Per Capita Income=Total Population Total National Income
• PCI is an indicator of the
  standard of living in a country.
• It reflects the average
  share of national income per individual, though it does not account for
  income inequality.

3. Total Population

Meaning:
Total Population refers to the total number of people living in a country at a
given time.

Explanation:

• Population size impacts
  economic indicators such as national income and per capita income.
• A larger population may
  increase total national income due to more workers, but it can also reduce
  per capita income if national income growth does not outpace population growth.

Comparison Between Total National Income, Per
Capita Income, and Total Population

Aspect	Total National Income	Per Capita Income	Total Population
Definition	Total income earned by a country’s residents.	Average income per individual in a country.	Total number of people in a country.
Indicator	Measures economic size or productivity.	Measures average standard of living.	Indicates the demographic size of the country.
Formula	Sum of all income (wages, profits, rents, etc.).	Total National Income ÷ Total Population.	Total count of individuals.
Interrelation	Increases with economic output and productivity.	Depends on both total income and population size.	Affects how income is distributed and perceived.
Economic Implications	Reflects overall wealth but not income distribution.	Indicates living standards but hides inequality.	Larger populations may dilute per capita income.

Key Insights

• National Income grows with productivity,
  industrial output, and resource utilization.
• Per Capita Income provides a better idea of
  individual prosperity but requires adjustment for inequality.
• Total Population affects both metrics: more
  people mean higher total income potential but lower per capita income if
  resources are stretched.

To
achieve higher living standards, countries aim for balanced growth in national
income and population management, ensuring sustainable increases in per
capita income.