ECONOMICS (CBSE/UGC NET)

Detailed explanation-1: -GDP per capita is not the same as average income because Gross domestic product measures how much every individual has contributed to production. In contrast, income per capita measures the average income of every individual in the country.

Detailed explanation-2: -GDP per capita is the sum of gross value added by all resident producers in the economy plus any product taxes (less subsidies) not included in the valuation of output, divided by mid-year population. Growth is calculated from constant price GDP data in local currency.

Detailed explanation-3: -The per capita income of a geographical location (say, a country, state, city, or others) measures the amount of money earned by every person in that area. It determines the average income of a person in a country, a state, or a specific region.

Detailed explanation-4: -Per capita is a Latin term that translates to “by head.” Per capita means the average per person and is often used in place of “per person” in statistical observances.

Detailed explanation-5: -Average income = total income of the area/total population of that area.