Question
What is true about Per Capita Income? 1) Per
capita income is a measure of the amount of money earned per person in a nation or geographic region. 2) Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. 3) Per capita income for a nation is calculated by dividing the country's national income by its population.Solution
Solution: Per capita income is a measure of the amount of money earned by per person in a nation or geographic region. Per capita income can be used to determine the average per-person income for an area and to evaluate the standard of living and quality of life of the population. Per capita income for a nation is calculated by dividing the country's national income by its population. Per capita income counts each man, woman, and child, even new-born babies, as a member of the population. This stands in contrast to other common measurements of an area's prosperity, such as household income, which counts all people residing under one roof as a household, and family income, which counts as a family those related by birth, marriage, or adoption who live under the same roof.
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