what is average income or per capita income ? Why do we use averages ? What are limitation if per capita income?
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It can apply to the average per-person income for a city, region or country, and is used as a means of evaluating the living conditions and quality of life in different areas. It can be calculated for a country by dividing the country's national income by its population..
We use averages because they are useful for comparing differing quantities of the same category. For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people.Due to limitations of nationalincome as an indicator of development, economists like Rostow, Baran and Leibenstein etc. favored the use of per capita income as an index of development. ... Broadly speakingper capita income refers to the real national income divided by the total population of the country.
We use averages because they are useful for comparing differing quantities of the same category. For example, to compute the per capita income of a country, averages have to be used because there are differences in the incomes of diverse people.Due to limitations of nationalincome as an indicator of development, economists like Rostow, Baran and Leibenstein etc. favored the use of per capita income as an index of development. ... Broadly speakingper capita income refers to the real national income divided by the total population of the country.
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Per capita income means total income divided by total no of persons
This average measurement is useful in our country bcoz one country will be less populated than the other in such cases the income graph may differ depending on population in those cases average income s useful
This average measurement is useful in our country bcoz one country will be less populated than the other in such cases the income graph may differ depending on population in those cases average income s useful
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