what is average income and its uses?
Answers
Explanation:
Average income also known as per capita income is the total income of the population of any country per total no. of population.
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Answer:
Average income is defined as the minimum amount of money that is available to a person living in a particular area.
Explanation:
Average Income or per capita income is the minimum amount of money that a person has in a given period in a given area. It is calculated by dividing the total income of an area by total population of that area.
It has several purposes, but the two most important purposes are, I.) It indicates about the prosperity of a nation, the countries with high per capita income or average income is more developed. Its citizens have better access to the commodities available in the market along with healthcare. And, that’s why they are more developed with better infrastructures.
The average income also calculates the purchasing power of people, it shows how much money they have to buy essential commodities that decide his well being and in the long run the economic conditions of the country. That’s why average income is calculated from time to time.