CHANAKYA NATIONAL LAW UNIVERSITY

NYAYA NAGAR, MITHAPUR, PATNA-800001

MANAGERIAL
ECONOMICS
TOPIC: “LOW PER CAPITA INCOME AND ITS IMPACT ON
GROWTH”
ROUGH DRAFT SUBMITTED IN THE PARTIAL FULFILMENT OF THE COURSE
TITLED

PROPOSAL SUBMITTED BY
NAME: RISHABH SINHA
ROLL NO: 2034
SEMESTER:THIRD
YEAR: 2018-2023
COURSE: B.B.A.,LL.B. (HONS)
PROPOSAL SUBMITTED TO

Dr. Manoj Mishra

FACULTY OF MANAGERIAL ECONOMICS
INTRODUCTION
Per Capita income is a measure of the amount of money earned per person in a nation or geographic
region. Per capita income can be used to determine the average per-person income for an area and to
evaluate the standard of living and quality of life of the population. Per capita income for a nation is
calculated by dividing the country's national income by its population.

Per capita income counts each man, woman, and child, even newborn babies, as a member of
the population. This stands in contrast to other common measurements of an area's
prosperity, such as household income, which counts all people residing under one roof as a
household, and family income, which counts as a family those related by birth, marriage, or
adoption who live under the same roof. Perhaps the most common use of income per capita is
to ascertain an area's wealth or lack of wealth. Per capita income is also useful in assessing
an area's affordability. It can be used in conjunction with data on real estate prices, for
instance, to help determine if average homes are out of reach for the average family.
Notoriously expensive areas such as Manhattan and San Francisco maintain extremely high
ratios of average home price to income per capita.

There are many limitations to per capita income and it can be skewed easily based on living
standards as it doesn’t provide an acute representation of income or the standard of living.
Per Capita includes children in the total population , but children don’t earn any income. Per
capita income doesn’t reflect savings or wealth so for example a person with low income has
huge amount of savings to live a higher standard of living. Per capita income would reflect
him as a low income earner.

AIMS AND OBJECTIVES

1. The researcher tends to analyze the limitation on per capita income.
2. The researcher tends to throw light on the impact of economic growth in a country due to
low per capita income.
3. The researcher tends to emphasize the characteristics of per capita income.

RESEARCH METHODOLOGY

The researcher will be relying upon doctrinal mode of research.

SOURCES OF DATA
The researcher uses both primary as well as secondary sources.

TENTATIVE CHAPTERIZATION
1. Introduction
2. What is Per Capita Income?
3. Impact of low per capita income on economic growth
4. Limitations of Per capita income
5. Per capita income in developing countries
6. Conclusion & Suggestion

HYPOTHESIS
The researcher has taken the following hypothesis :

Per Capita Income plays no role in assessing a country’s wealth.

BIBLIOGRAPHY
Primary source :
Books-
1. Managerial Economics By DN Dwivedi
2. Managerial Economics By GS Gupta
3. Managerial Economics By Yogesh Maheshwari

Secondary source:
Websites-
1. www.investopedia.com
2. www.economicsuk.com
3. www.nakedcapitalism.com