Q.What is Per Capita Income? Explain how it is calculated and state one limitation of using it as a measure of welfare.

Per capita income is a simple average that is useful for comparison but does not, by itself, describe how income is actually shared. …

Per Capita Income (PCI) is the average income available per person in a country or state, obtained by dividing total national income by the mid-year population:

Because it adjusts for population size, PCI is widely used in Maharashtra HSC Economics to make rough comparisons of living standards — between countries of different sizes, or between one Indian state and another. Its growth over successive years is often quoted as a simple proxy for economic progress. …

Students sometimes divide by total population without specifying it should be mid-year population (matching the period the national income figure covers), or state the …