Per Capita Income

Topics: Sociology, Social sciences, Science Pages: 3 (734 words) Published: April 3, 2011
Per capita income
The total national income divided by the number of people in the nation Another definion
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. ...

Formula of per capita income
per capita income= national incomepopulation
Per capita income of pakistan
The economic survey of Pakistan 2009-2010 has shown a meagre increase in per capita income of Pakistan. This is only a 0.4% rise according to the economic survey of Pakistan which was release by Ministry of Finance, Pakistan.

No.| Year| Per Capita Income In Dollars| PCI Previous Year| Growth Rate Of PCI| 1.| 2009-10| $ 1051| $ 1046| 0.4 %|
2.| 2008-09| $ 1046| $ 1042| 0.3 %|
3.| 2007-08| $ 1042| $ 925| 18.4 %|
4.| 2006-07| $ 925| $ 847| –|
5.| 2005-06| $ 847| $ 736| 14.1 %|
6.| 2004-05| $ 736| $ 657| 13.5 %|

Per capita income as a measure of prosperity
Per capita income has several weaknesses as a measurement:
* Economic activity that does not result in monetary income, such as services provided within the family, or for barter, are usually not counted. The importance of these services varies widely between different economies , both between countries and among different groups within a country. * If the distribution of income within a country is skewed, a small wealthy class can increase per capita income far above that of the majority of the population. * International comparisons can be distorted by skewed exchange rates. The same good, e.g., one pound of rice may sell for a much different price in two countries. If goods cost twice as much in country A and A has twice the per capita income, the countries may be equally prosperous despite the income figures. Median income is a more widely accepted measure of prosperity, because it is not...
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