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How to calculate per capita income of a country?

Question:

How to calculate per capita income of a country?

National Income Statistics:

National income statistics are statistics that are computed by the country and they include the gross domestic product, per capita value among others. These statistics are used to compare the living standards of individuals in different countries and to show the level of living standards in a country.

Answer and Explanation:

Per capita income of a country refers to that average level of income per person in a country. There per capita income is computed using the following formula:

  • {eq}\text{Per capita income}=\dfrac{\text{Total income}}{\text{Total population}} {/eq}

For example, taxing the total income or the GDP of a country to be $4,550,000,000 and the country's population is 3000000 people the per capita income will be:

  • {eq}\text{Per capita income}=\dfrac{ $4,550,000,000}{3000000 } {/eq}
  • {eq}\text{Per capita income}=$1516.667 {/eq}

Learn more about this topic:

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Overview of the Gross Domestic Product

from CLEP Social Sciences and History: Study Guide & Test Prep

Chapter 59 / Lesson 2
3.5K

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