meaning of per capita income in economics
Answers
Per capita income,also known as average income is defined as the total income of the country by total population of the country.
Per capita income is one of the criterion to measure the development of states or countries and compare the development .
World Bank uses only per capita income as the criterion to classify countries .
According to 2012,World Development report,
Countries with per capita income US $1216 per annum and above are considered as the developed countries.
Countries with per capita income US $1035 per annum or less are considered as undeveloped countries.
India with the income US $1530 per annum is considered as Developing country.
Hence,we can say that per capita income is one of the criterion to measure the development of countries or states.But it is not only the factor to measure development.
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Answer:
Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.
Explanation:
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