While calculating the per capita income,isn't that the same income can be added twice,if a person with his income buys - Social Science - Development

Question

While calculating the per capita income,isn't that the same income
can be added twice,if a person with his income buys something then
another person gets the money and the seller's income is also
added,this is wrong,so how is it solved

Zainab Fatma · Accepted Answer

Dear Student,

Per Capita Income is the average income earned per person in an economy during an accounting period. It is estimated by the following formula.

$P e r C a p i t a I n c o m e = \frac{N a t i o n a l I n c o m e}{T o t a l P o p u l a t i o n}$

Regards.

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While calculating the per capita income,isn't that the same income can be added twice,if a person with his income buys something then another person gets the money and the seller's income is also added,this is wrong,so how is it solved