Per capita income is calculated as
- total income ÷ total population
- total population ÷ total income
- total income × population
- total income − total expenditure
Show answer and solution
Correct answer: A. total income ÷ total population
1. Per capita income is the average income of a country's residents.
2. It is computed as total income divided by total population.
3. This is the standard measure used in World Development Reports.
_Source: syllabus Understanding Economic Development, Ch 1 "Development"_