Question

For comparison between countries total income is not such a useful
measure. Since, countries have different populations, comparing total
income will not tell us what are average person is likely to earn. Are
people in one country better off than others is a different country?
Hence, we compare the average income which is the total income of the
country divided by its total population. The average income is also
called per capital income.
i) What is per capita income?
ii) What is the main criterion used by the World Bank is classifying
different countries? What is the limitation of this criterion? If any?​

Answer 1

Answer:

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Explanation:

(1) . per capita income or average income measures the average income earned per person in a given area in specified year. It is calculated by dividing the area's total income by it's total population. per capita income is national income divided by population size.

(2). The main criterion used by the world Bank in classifying different countries in per capita income or average income of a person in a country.

Limitations of this criterion:

It does not tell us about how this average income is distributed among the people in the individual countries.