Solution:

• Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year.

• It is calculated by dividing the area’s total income by its total population.

• Per capita income is national income divided by population size.

• Per capita income is often used to measure a sector’s average income and compare the wealth of different populations.

• Per capita income is often used to measure a country’s standard of living.