What is Per capita income?
[[File:CountriesByGDPPerCapitaNominal2018.png|300px|thumb|2018]] '''Per capita income''' or '''average income''' is the [[average]] amount of money a person gets in a year. It is found by [[Division (mathematics)|dividing]] the amount of money in an area by the number of people living there.<ref>[http://www.thefreedictionary.com/per+capita+income Per capita income The Free Dictionary]</ref><ref>[http://www.investopedia.com/terms/i/income-per-capita.asp Income Per Capita Definition, Investopedia]</ref> Per capita income is often used to measure an area's average income. The [[currency]] used is often the [[euro]] or the [[US dollar]] as they are widely used international [[currency|currencies]]. It has been criticised for not accounting for [[inflation]]. This means that it overstates economic growth. It also means that a small number of wealthy people can increase the country's per capita income whilst the rest of the population experience no change. It does not account for the differences in the cost of living between countries.<ref>{{Cite web|url=http://voxeu.org/article/defence-gdp-measure-wellbeing|title=Hooray for GDP! GDP as a measure of wellbeing|first=Nicholas|last=Oulton|date=22 December 2012|publisher=VOX, CEPR's Policy Portal|access-date=2 September 2016}}</ref> ==References== {{reflist}} [[Category:Income]] [[Category:Economic indicators|income]] {{stub}}