Question 35 of 36
Q.Explain per capita income as an indicator of economic development.
Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2026Subjective· 3mImportance★★★★★
97% · 35/36 Questions
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Start your 14-day free trial to unlock the full solution →Per-capita income = national income / population; higher PCI usually signals higher living standards and development, but it hides income distribution.
Meaning: Per-capita income (PCI) is the average income of a person in a country, obtained by dividing the national income by the total population:
Per-capita income = National income ÷ Total population.
As an indicator of development:
- A higher per-capita income generally reflects a higher average standard of living and greater availability of goods and services, so it is widely used to compare development levels across countries and over time.
- A country with rising real per-capita income is usually regarded as developing/growing. …
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