Q.Write a short note on per capita income.

Per capita income is national income divided by population — the average income per person — used to compare living standards across countries and over time.

Per capita income (PCI) means the average income earned per person in a country during a given year. It is calculated as:

Per Capita Income = National Income / Total Population

Uses and importance:

• It measures the average standard of living of the people.
• It is widely used to compare economic welfare between countries and to judge whether a country is developed or developing.
• Growth in real per capita income over time indicates rising prosperity.

Limitations:

• It is only an average and hides the unequal distribution of income between rich and poor. …