How can put capita income be used to compare two countries?
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Explanation:
the per capita income of a country is the total national income (GDP) divided by total population . it is used to compare the development of countries by the World Bank
Since GDP is measured in a country's currency, in order to compare different countries' GDPs, we need to convert them to a common currency.
One way to compare different countries' GDPs is with an exchange rate, the price of one country's currency in terms of another.
GDP per capita is GDP divided by population.
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