what is per capita income? how it is calculated? why is it not adequate indicator?
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Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population..
It is an inadequate indicator to compare the developments of any states, countries, etc as they do not show whether the distribution of income is equal among all the groups and classes of the area or there are wide disparities between the rich and the poor.
It is an inadequate indicator to compare the developments of any states, countries, etc as they do not show whether the distribution of income is equal among all the groups and classes of the area or there are wide disparities between the rich and the poor.
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Per capita income is also known as average income. It is the average income of an individual.
It is the total income of a country divided by its total number of population.
Average income = (total income of a country) / (total no. of population of that country).
It is not an adequate indicator. It has some setback. It does not indicate about the proportion of rich and poor in a country. It does not tell the living standard of people in a country.
Hope it helps !!
It is the total income of a country divided by its total number of population.
Average income = (total income of a country) / (total no. of population of that country).
It is not an adequate indicator. It has some setback. It does not indicate about the proportion of rich and poor in a country. It does not tell the living standard of people in a country.
Hope it helps !!
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