|
Answer» Per capita income (PCI):
The division of gross national income with total population of that nation is called the per capita income.
Gross National Income Per capita income = Gross National Income Total Population Importance: - If population grows faster compared to national income the per capita income decreases.
- The per capita income is an average measurement.
- Per capita income docs not change with change in the distribution of national income.
- Per capita income is not a true criterion of individual income.
- The true criterion of country’s progress is not the national income but per capita income.
- UNO also uses figures of per capita income along with the figures of national income while comparing the progress of two countries.
- The comparison of two countries can be done by comparing their per capita incomes.
- Per capita income helps to assume the standard of living of citizens of that country.
|
