Identify the correct meaning of average income or per capita income.

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Total income by the average population

Total population by development

Total development by income

Total income by total area

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Detailed Solution

Per-capita income is also known as average income, as it is calculated by dividing the total income of a country by its total population. With a per-capita income of US$ 12236 Per Annum or above, poor or underdeveloped, or low-income countries have a per-capita income of US$ 1005 PA or less. Per-capita income is not an appropriate measure because it has many limitations. Per-capita income does not tell us about the income distribution of a country; it is affected by the population size of a nation, and it does not tell us about the availability of essential resources in a country meant to influence the quality of life of people in that country.

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