What is Per Capita Income?

What per capita income is, is the amount of income made by the average person in a group. For example, in an area where 10 people earn $100,000.00 per year and 10 people earn $50,000.00 per year, the per capita income would be $75,000.00 per year. When looking at statistics, per capita income can be a good general way of assessing a nation’s wealth. However, because per capita income is an average, the number fails to show disparages in wealth. A few multi-millionaires thrown in among the working poor can mislead those looking at per capita income into believing that the average person is better off financially than he or she actually is.