Speak about PCI (Per capita income)
Answers
Answer:
hi
Explanation:
Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population.
ECONOMICS MACROECONOMICS
Per Capita Income
By WILL KENTON
Reviewed By MICHAEL J BOYLE
Updated Nov 10, 2020
What Is Per Capita Income?
Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population.
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Income Per Capita
Understanding Per Capita Income
Per capita income counts each man, woman, and child, even newborn babies, as a member of the population. This stands in contrast to other common measurements of an area's prosperity, such as household income, which counts all people residing under one roof as a household, and family income, which counts as a family those related by birth, marriage, or adoption who live under the same roof.
Per Capita Income in the U.S.
The United States Census Bureau takes a survey of income per capita every ten years and revises its estimates every September. The Census takes the total income for the previous year for everyone 15 years and older and calculates the median average of the data. The census includes earned income (including wages, salaries, self-employment income), interest income, dividends as well as income from estates and trusts, and government transfers (Social Security, public assistance, welfare, survivor and disability benefits). Not included are employer-paid healthcare, money borrowed, insurance payments, gifts, food stamps, public housing, capital gains, medical care, or tax refunds.
Answer:
Per Capita Income is one of the ways of calculating the development of countries. It gives us an idea about the average income of the country. We find it by dividing the total income with the total population of the country.
Demerits:
1) It still doesn't give us a clear picture of the average income by a person living in the country as it maybe possible that a large proportion of country's wealth is owned by a small proportion of very rich people whereas a large population of the country is very poor.
2) Income is not enough to compare the development of countries. Several other factors like educational attainment index, health index etc are also some important criteria.