Question

Which one of the following statements is true about "Per Capita income‟?

(a) Average income divided by the total population of a country is called Per Capita Income
(b) The Average Income is also called Per Capita Income
(c) Per Capita Income has nothing to do with the development of a country.
(d) Total Population of a country divided by the number of people who earn is called Percapita income​

Answer 1

Answer:

Per capita income (PCI) or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area's total income by its total population.

Countries by GDP (nominal) per capita in 2019.

Per capita income is national income divided by population size. Per capita income is often used to measure a sector's average income and compare the wealth of different populations. Per capita income is also often used to measure a country's standard of living. It is usually expressed in terms of a commonly used international currency such as the euro or United States dollar, and is useful because it is widely known, is easily calculable from readily available gross domestic product (GDP) and population estimates, and produces a useful statistic for comparison of wealth between sovereign territories. This helps to ascertain a country's development status. It is one of the three measures for calculating the Human Development Index of a country. Per capita income is also called average income.