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What is the difference between per capita GDP and national income​

User Nacorid
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Final Answer:

Per capita GDP measures the average economic output per person in a country, while national income represents the total income earned by a country's residents, including both domestic and foreign sources.

Step-by-step explanation:

Per capita GDP, or Gross Domestic Product per capita, is a metric that calculates the average economic output per person in a given country. It is obtained by dividing the total GDP of a country by its population. This indicator provides insight into the standard of living and economic well-being of the population on an individual basis.

On the other hand, national income encompasses the total income earned by a country's residents, including both domestic and foreign sources. It reflects the overall economic performance of a nation, considering factors such as wages, profits, and taxes. National income takes into account the total earnings generated within a country's borders and the income received from abroad.

In essence, per capita GDP focuses on the average economic productivity of individuals within a country, while national income provides a broader perspective, considering the overall income generated by the entire nation. While per capita GDP indicates the economic well-being of an average citizen, national income offers a comprehensive view of a country's economic health by considering all income sources.

User Simon Whitehead
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