per capita income

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The best measure to assesss a country's economic growth is per capita income at constant prices.

Q1 . what is "per capita income at constant prices" ?

can you give one example about what does it mean ?

Q2 . you know, there is another term called "per capita income at current prices "....what it this ?

its very confusing to understand the diffrence between the two . can you provide examples to know the difference.

thank you

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Re: per capita income

tintin wrote:

The best measure to assesss a country's economic growth is per capita income at constant prices.

Q1 . what is "per capita income at constant prices" ?

can you give one example about what does it mean ?

Q2 . you know, there is another term called "per capita income at current prices "....what it this ?

its very confusing to understand the diffrence between the two . can you provide examples to know the difference.

thank you

"Per capita income at constant prices" would be measuring the per capita income against a set value. Typically this is done my using the value of money at a specific point in time.

The other term would be "Adjusted per capita income". This adjusts the per capita increases/decreases to account for things like inflation.

The 1st accounts for the actual raw monetary increase/decrease, the 2nd is useful for measuring the effectiveness of any increase/decrease.

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Sir, can you give some real examples.....its difficult to grasp. will you be explicit more ? will you become more simpler ? its still confusing....i dont understand your terms.

plz provide a simple example.

thank you for the response

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per capita income

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