Social Sciences, asked by Draxillus, 1 year ago

which concept is called adjusted per capita income.

Answers

Answered by Anonymous
21
Percapita income is the indicator of financial status of the people of a country. This indicator is used by World Bank to judge the rank of a country.
Currently Norway leads the table.
Adjusted per capita income is per capita income adjusted for the purchasing power of the dollar. This adjustment is done for the following reason.

Dollar being the most acclaim currency in the world Generally, per capita income is measured in US dollars. Hence, the per capita income of a country is converted from the local currency to the dollar at the market exchange rate.
However, this misses the fact that the dollar may have different purchasing power in different countries. In developing countries like India, most products are cheaper than in the US. Hence, simply measuring per capita in US dollars may understate the per capita income in countries like India. Hence, the adjustment is done to reflect the difference in purchasing power so that a possible correct figure and assessment


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Answered by Anonymous
18
Adjusted per capita income is per capita income adjusted for the purchasing power of the doller.
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