Per capita income explained

Per capita income means how much each individual receives, in monetary terms, of the yearly income generated in the country. This is what each citizen is to receive if the yearly national income is divided equally among everyone. Per capita income is usually reported in units of currency per year (e.g. US$20,000 per year). When comparing nations per capita income reflects gross national product per capital income, but it is also used to compare municipalities within nations. When determining the per capita income of a community, the total personal income is divided by the population.

If the real per capita income increases over a long period of time, it will indicate that country is making economic development

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