Question

How is per capita income used to compare two countries?

Answer 1

hii
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 .

The country with higher per capita income implies that its people are earning more on an average and this considered the indicator of higher development . However , this hides the fact that there may be wide disparities in the earning of people , which implies inadequate social development .

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Answer 2

Answer:

Per capita income may be used to calculate an area's average per-person income as well as to assess the population's level of living and quality of life.

Explanation:

• The per capita income of a country is derived by dividing the national income by the population of the country.
• The World Bank's primary criterion for categorizing various nations is per capita income.
• We use averages because they let us compare varying amounts of the same category.

For instance, averages must be used to calculate a country's per capita income since the earnings of different groups of individuals vary.

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