What do you mean by per capita income of a country? How it can be used to compare two countries explain.

Per capita income is calculated by dividing the total income of the country by total population. This provides us with a data that reflects the average income of the people. The more the per capita income the better is the condition of the people and more is the development.  

It can be used as comparative scale to judge the development and growth of two countries. The less is the per capita income it reflects two things:
  • either the economy of the country is very poor
  • or the distribution of income is very uneven.

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