Q.What is Per Capita Income?

Per capita income is the average income earned per person in a country.

Per Capita Income (PCI) is calculated by dividing a country's total national income by its total population:

It is the oldest and simplest indicator used to compare levels of development across countries, since a rising PCI suggests that, on average, people command more purchasing power. Its main weakness is that it is only an average — it tells us nothing about how income is actually distributed …

Treating a high per capita income as automatic proof of high development, ignoring that it is only an a …