Question

Define per capita income.

Answer 1

per capita income.

• Per capita income, also known as income per person, which means an income of the people in an economic unit such as a country or city.
• It is calculated by taking a measure of all sources of income in the aggregate (such as GDP or Gross national income) and dividing it by the total population.

Answer 2

• Per capita income is defined as the average income earned by a person in specific area in a specified year.
• Area may be a city, region, and a country.
• It is determined by dividing area’s total income over area’s total population.

• Hence, the formula for per capita income will be:  

         Per Capita Income = (Area's total income) / (total population)