Final answer:
The primary factors determining per capita income are human capital and capital per labor.
Step-by-step explanation:
The primary factor determining per capita income (average standard of living) is human capital. Human capital refers to the accumulated knowledge, skills, and expertise of the average worker in an economy, which are acquired through education and experience. The higher the level of average education in an economy, the higher the accumulated human capital and the higher the labor productivity, leading to higher per capita income.
Another important factor is the amount of capital per labor. This refers to the physical capital available to each worker, which includes machinery, tools, and equipment. Having a sufficient amount of capital per worker can increase productivity and, consequently, per capita income.
Therefore, the two primary factors determining per capita income are human capital and capital per labor.