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Q131 (IAS/1997) Economy › Basic Concepts & National Income › National income aggregates Answer Verified

The average monthly income of a person in a certain family of 5 is Rs. 1000. What will be the monthly average income of a person in the same family if the income of one person increased by Rs. 12,000 per year ?

Result
Your answer: —  Â·  Correct: A
Explanation

Start with the given per-person monthly average of Rs. 1,000 for a family of five, so total family monthly income = 5 × 1,000 = Rs. 5,000. Treating averages as per-capita measures (as commonly used in income accounting) helps frame the calculation [2]. An increase of Rs. 12,000 per year for one person equals an additional Rs. 12,000 ÷ 12 = Rs. 1,000 per month. Adding this to the family’s monthly income gives Rs. 5,000 + 1,000 = Rs. 6,000. Dividing by five persons yields a new monthly per-person average of Rs. 6,000 ÷ 5 = Rs. 1,200. The correct choice is Rs. 1,200 [2].

Sources

  1. [2] Understanding Economic Development. Class X . NCERT(Revised ed 2025) > Chapter 1: DEVELOPMENT > INCOME AND OTHER CRITERIA > p. 9
  2. [1] Macroeconomics (NCERT class XII 2025 ed.) > Chapter 3: Money and Banking > The Transaction Motive > p. 43
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