Question

what is per capita income how is it calculated why is per capita income not adequate indicator of economic development of a country explain

Answer 1

national income divided by total population of the country.

Answer 2

Hey friend

Here is your answer

Per Capita income is the income of a country per person.

The reason why it’s not a good measure is as follows:

Imagine Country X has 10 citizens. All citizens have a job, and the hourly income per capita is $25/h.

Now, it could be the case that each citizen earns $25 an hour, and the total hourly wage is $250/h. However, most likely, this isn’t the case.

If 9 citizens make only $2/h, and the 10th citizen earns $232/h, the total hourly wage of the country is still $250/h, and the hourly wage per capita is still $25/h.

Income per Capita does not show income inequality. But then again, very few measures actually do.

HOPE IT HELPS!!!!!!!!