Profile
Settings
Refer your friends
Sign out
Per capita income is the measurement of the money which is earned by the people in a proper geographical region. It evaluates the quality of living of the people of that particular area. It also determines the quality of the living life of the population of a specific area. PCI for a country can be calculated by dividing the national income by the population size.
Per Capita Income
Per capita income often measures and compares the average wealth of different people and populations. On the other hand it is also the measurement of the standard of living of a country. It is very useful because it is widely calculable from the Gross Domestic Product. It also assures the development status of a country. The per capita income is another known as the “average income” of a country. It measures the relevant income to an employment. When the per capita income reduces it helps the national leaders to analyze and measure the present average income of the nation. The per capita income is a helpful tool and a required aid to access a country’s national income. If any nation goes through an economic downturn then it assists the country as a national aid. This medium household income also determines how many people are in poverty in a particular region. The most common factor of the PCI is that it asserts the growth or lack of the total wealth of a country or region. So, the formula for the measurement of PCI= The national income of a country/ The population of a country.
GDP per capita
GDP itself measures the economic productivity of a country. The GDP of a country depicts the gross value of goods and services. GDP or Gross Domestic Product per capita income refers to the GDP of a country which is divided by the total population of a specific country. The per capita GDP is a financial tool that breaks down the economic output of a country. This output is measured by dividing the GDP by the population of that selected country. It is basically a global measurement which explores the prosperity and the economic growth of a country. The developed and the rich industrial countries have the highest rate of the GDP per capita. It is one of the most universal components because it broadly measures global prosperity. The economic production value of each citizen has been measured by this GDP per capita. It acts like a device which measures the prosperity of the citizens of a country. It analyzes the per capita GDP which compares prosperity and growth across the globe and measures the economic activity of the whole world. For example, the U.S has a $23.9 trillion GDP and $71,343 trillion per capita GDP in the year of 2021.
Highest per capita income
The highest PCI measures the highest economic output of a country. The rich countries with the small number of population have the higher per capita GDP because the wealth spreaded over among a few people of a country which raises the GDP level of that country. The nations which have the highest economic production have the highest GDP per capita. Some countries which have the highest per capita income are as follows. The country Liechtenstein has the $139,100 highest per capita income whereas Monaco has the $115,700, Luxembourg has the $110,300 on the other hand Singapore has the $93,400 and Ireland has the $89,700 high per capita income.
Low per capita income
The highest per capita income measures the high living standards of a country, hence the lowest per capita income indicates the struggle of the supply of goods and services of a country. It also shows the economical struggle of a country. Poor development and infrastructure depicts the low standard of living of a country or nation. 13 million of inhabitants of South Sudan have been struggling with high death, poverty and economic breakdown. So, these types of countries are going through low PCI. Some countries which have the lowest PCI are the poorest countries. As per the CIA World Factbook countries with the lowest per capita income are as follows. Burundi has the $700 PCI, Somalia has the $800 whereas the Central African Republic has the $900 PCI and Niger has the $1,200 per capita income.
Conclusion
PCI measures the amount of the money measured by the people of a specific country. It considers the income of every person within the specific area. It also calculates the number of the jobless people, the homeless children and it also depicts the average income of a nation. This assignment depicts the aspects of the PCI and on the other hand it also shows the difference of the high and low PCI. Thus, it contrasts the measurement of the prosperity of a specific area.
