Per capita income,
Definition of Per capita income:
Per capita income is a measure of the amount of money earned per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population.
Total national income (GDP) divided by total population. It is not the average income (because it includes children and non-working population) but serves as an indicator of a countrys living standards.
Per capita income counts each man, woman, and child, even newborn babies, as a member of the population. This stands in contrast to other common measurements of an area's prosperity, such as household income, which counts all people residing under one roof as a household, and family income, which counts as a family those related by birth, marriage, or adoption who live under the same roof.
How to use Per capita income in a sentence?
- Knowing the per capita income of those around your business can help you figure out how much to charge for your product.
- If your business is in an area with a high per capita income you will be able to charge a bit more than if in another area.
- Per capita income is a measure of the amount of money earned per person in a nation or geographic region.
- Per capita income helps determine the average per-person income to evaluate the standard of living for a population.
- The annual financial reports predicted that the developing nations per capita income would steadily increase over the next five years.
- Per capita income as a metric has limitations that include its inability to account for inflation, income disparity, poverty, wealth, or savings.
Meaning of Per capita income & Per capita income Definition