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Question 35 of 36

Q.Explain per capita income as an indicator of economic development.

Gujarat GsebGujarat Board (GSEB) HSC Commerce Board 2026Subjective· 3mImportance★★★★★
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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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