Per capita income is the numerical quotient of national production by population, in monetary terms. It is a measure of the monetized production per person an economic aggregate such as a country, not of the actual distribution of income or current net wealth in that aggregate. This is what each individual wouldreceive if the periodic income were divided equally among everyone, i.e. if income inequality were non-existent. Per capita income is usually reported in units of currency per annum. When comparing nations per capita income reflects gross national product per person, but it is also used to compare municipalities within nations.

Per capita income as a measure of wealth

Per capita income is often used as a measure of the wealth of a nation, particularly when comparing countries with substantially different levels of wealth, however, it has several weaknesses as a measurement. Economic activity that does not result in monetary income, such as services provided within the family, or for barter, are usually not counted. The importance of these services will vary widely between different economies, both between countries and among different groups within a country. As for the per capita income of the majority of the population, using the median income or Amartya Sen s Social welfare function is the more appropriate approach. Differing currency exchange rate between countries mean that a given amount of money (for example, one US dollar) has differing values in different places.The total income is compared between each country or state comparing the total income tells the average income... hence we compare the average income which is the total income divided by the total population... the average income is called as per capita income per capita income income is measured as national income/total population of the country calculator as

See also

* Total personal income * List of countries by GDP (PPP) per capita - GDP calculated at purchasing power parity (PPP) exchange per inhabitant * List of countries by GDP (nominal) per capita - GDP at market or government official exchange rates per inhabitant * List of countries by GNI per capita * List of countries by income equality Category:Income ar:ناتج قومي للفرد bn:মাথাপিছু আয় cs:Důchod na hlavu de:Pro-Kopf-Einkommen es:Renta per cápita fr:Revenu par tête gl:Renda per cápita hi:प्रति व्यक्ति आय id:Pendapatan perkapita it:Reddito pro capite ms:Pendapatan per kapita pt:Renda per capita ru:Доход на душу населения ur:فی کس آمدنی vec:Rèdito par òn vi:Thu nhập bình quân đầu người wa:Rivnou par djin