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Q.

Per capita income is calculated in dollars because


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a

It ensures comparison between countries

b

The dollar is the dominating currency

c

Dollar is the only reliable currency in the world

d

Dollars are easily convertible 

answer is A.

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Detailed Solution

Per capita income is calculated in dollars because it helps in the easy comparison of the countries.
Per capita income or average income is calculated by dividing the total income of a country by its total population. It is one of the common indicators used by countries to compare their economic development. Per capita income is also an important component of the Human Development Index.
Calculating per capita income in different currencies makes the comparison very difficult; hence it is calculated in dollars to ensure the comparison.
 
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