What does "per capita" signify?

The term "per capita" is a Latin phrase that translates to "by heads" in English. It is commonly used in various contexts, particularly in statistics and economics, to indicate an average per person. For example, if a country's income is expressed “per capita,” it means the average income per person, calculated by dividing the total income by the population. This concept allows for a more standardized comparison across different populations or groups, as it normalizes the figures to individual contributions or allocations.

The other options do not align with the definition of "per capita." In the context of the phrase, the interpretations provided in those choices do not convey the concept of averaging or distribution per individual, which is the core meaning of the term. Thus, "by the heads" succinctly encapsulates the notion behind "per capita."