what is per capita income

what is per capita income

Per capita income refers to the average income earned per person in a specific area, such as a country or region. It is calculated by dividing the total income generated in that area by the total population. Per capita income is often used as a measure of the average standard of living within a population. It helps economists and policymakers understand the distribution of income and wealth among the residents of a particular area and can be an indicator of economic development and prosperity.