what are per capital income how it is calculated why is per capital income not is advocated indicator of economic development of a country explain
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Per Capita Income measures the average income earned by per person in a specified year .
When the total National income of the country is divided by its total population then we get the Per Capita Income.
Per Capita Income is not the Advocate indicator of the economic development of a country because although the country maybe rich, there may not be equal distribution of income. A small number of people may be extremely rich and the masses maybe poor. Hence, while average income is useful for comparison it does not tell us how this income is distributed among people.
When the total National income of the country is divided by its total population then we get the Per Capita Income.
Per Capita Income is not the Advocate indicator of the economic development of a country because although the country maybe rich, there may not be equal distribution of income. A small number of people may be extremely rich and the masses maybe poor. Hence, while average income is useful for comparison it does not tell us how this income is distributed among people.
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Average income is called per capita income. It is calculated by dividing the total income of the region to the total population of the region.
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