Answer to Question #128619 in Macroeconomics for Juanita kumah

Question

The per capital income in Ghana and Nigeria for the year 2019 are 4605 and5927 dollars respectively.discuss the flaws of using these figures to suggest that the welfare of people living in Nigeria is better than those living in Ghana

Answer 1

Per capita income measures the average income earned per person in a given area in a specified year. And its calculated by dividing total national income by total population of an area or region. Therefore people living in Nigeria have a better live compared to those living in Ghana because the nigerians have an extra dollars to spend, they can purchase more hence satisfying much of there needs than the people of Ghana.