Explain the concept of per capita income.

1. Per capita income is the average income earned by a person in a particular city/ area or country in one financial year.

2. It is used as a means to measure the quality of life in an area.

3. It is calculated by dividing the total national income of a country by the total number of people living in that country.

4. It is reported in terms of a unit of currency, usually a widely known international currency like Euro or Dollar.

5. It reflects the gross national product of the country.

6. It is used as a measure to compare the wealth among countries.