Q.Write a short note on: Per Capita Income

Per capita income is the national income divided by the total population, giving the average income per person in a year. It is widely used as an indicator of the standard of living and the level of economic development.

Per capita income means income per head. It is an important measure in the study of National Income in the AP Intermediate 2nd-year Economics course (aligned with the NCERT/CBSE commerce curriculum).

Meaning and calculation. Per capita income is found by dividing the national income of a country by its total population for the same year. For example, if the national income is a certain amount and the population is known, the per capita income equals national income divided by population.

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