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

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

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

Because it adjusts for population size, PCI is widely used to make rough comparisons of living standards between countries of very different sizes, and its growth over time is often quoted as a proxy for a country's economic progress. …

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