Chapter 1 · Question 3
What is per capita income and what are its limitations?
Answer
Direct Answer
Per capita income is the total income of a country or state divided by its population. It helps compare average income, but it hides inequality because it does not show how income is distributed among people.
Simple Explanation
Per capita income is the total income of a country or state divided by its population. It helps compare average income, but it hides inequality because it does not show how income is distributed among people.
Exam-Ready Structure
Per capita income is the total income of a country or state divided by its population. It helps compare average income, but it hides inequality because it does not show how income is distributed among people.
Key Points
- Per capita income is the total income of a country or state divided by its population.
- It helps compare average income, but it hides inequality because it does not show how income is distributed among people.