Differentiate between per capita income and GDP.
Dear Student,
Kindly refer the following:
GDP:
a.The value of final goods and services produced in each sector in a year provides for total production in that sector.
b. The sum of production in all three sectors thus gives us Gross Domestic Product,
c. This GDP is calculated by the Central government , which collects information data from various government departments to get the final value of goods and services and then to calculate GDP.
Per capita:
The per capita is the average income which is calculated by dividing the total income by its population. Per capita is used to make comparisons among countries.Also to compare wealth among nations. It gives us an information about what an average person is likely to earn and therefore is an important indicator of development.
Regards
Kindly refer the following:
GDP:
a.The value of final goods and services produced in each sector in a year provides for total production in that sector.
b. The sum of production in all three sectors thus gives us Gross Domestic Product,
c. This GDP is calculated by the Central government , which collects information data from various government departments to get the final value of goods and services and then to calculate GDP.
Per capita:
The per capita is the average income which is calculated by dividing the total income by its population. Per capita is used to make comparisons among countries.Also to compare wealth among nations. It gives us an information about what an average person is likely to earn and therefore is an important indicator of development.
Regards