per capita income

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per capita income

the income per head of the population of a country. This is a usual way of distinguishing between the relative WEALTH of countries, although there exist many problems in using it. Not least of the problems is the continued existence of ‘subsistence’ economic activity and a widespread INFORMAL ECONOMY in many societies. This means that much economic activity goes unrecorded. A further difficulty is that exchange rates (the basis of per capita calculations of differences in income) between different currencies often fail to reflect internal differences in the purchasing power of different currencies. Thus, while useful in establishing broad differences between nations, the notion of per capital income should be used with caution in making more detailed comparisons.
References in periodicals archive ?
In other words, they are currently investing more in education relative to their per-capita income than the United States did at the beginning of the human-capital century.
Although no reliable data on the North Korean economy are available, it is generally thought that per-capita income in the North is about one-10th of that of the South.
President Kim Dae Jung said Friday he expects annual per-capita income in South Korea to rise to 13,000 U.
Bureau of Economic Analysis recently completed a survey of per-capita incomes in 366 metropolitan areas across the nation.