Economic Development Indices Questions Medium
The Income Index is calculated by taking the average income per capita of a country and dividing it by the global average income per capita. This ratio is then multiplied by 100 to obtain the Income Index value. The formula for calculating the Income Index can be expressed as:
Income Index = (Average Income per Capita / Global Average Income per Capita) * 100
The Income Index is a measure used in economic development indices to assess the relative income level of a country compared to the global average. It provides insights into the economic well-being and standard of living of a population.