How is per capita income calculated?

Per capita income is calculated by dividing the total income of a region, such as a country or a state, by its population size. This approach allows for a standardized measure of income that reflects the average income earned per person in that area. It provides insights into the economic well-being of the population and helps in comparing income levels across different regions or countries.

Choosing the method of division ensures that the income figure accurately represents the average individual income, which can serve as an important indicator for economic policies and standards of living. The other options involve methods or figures that do not accurately reflect the average income per person across the entire population; they either overestimate or are irrelevant to the general income distribution.