I. Urban Households

Population of urban households   refer to members of the household living and sharing economically together. All
income and expenditure of the population of the household are included in the income and expenditure of the household.

Proportion of urban employment   refer to the proportion of employed population to the population of urban households.

Number of dependents per urban employee  refers to the ratio between number of persons in urban households and
the number of dependents.

Total Income of Urban Households  refers to the sum of wage and salary, net business income, income from
properties, and income from transfers of members of the households, excluding income from selling of properties and
income from borrowings.

Disposable Income of Urban Households  refers to the actual income at the disposal of members of the households
which can be used for final consumption, other non-compulsory expenditure and savings. This equals to total income minus
income tax, personal contribution to social security and sample household subsidy for keeping dairies. Following formula is
used:

 Disposable income = total household income - income tax - personal contribution to social security - sample household
subsidy for keeping dairies

Total expenditure of Urban Households  refer to all expenditure of the households except expenditure on leading. It
includes expenditure on consumption, on purchasing or building houses, on transfers, on properties and on social security.

Consumption Expenditure of Urban Households  refers to total expenditure of the sample households for consumption
in daily life,  including expenditure on eight categories such as food, clothing, household appliances and services, health care
and medical services, transport and communications, recreation, education and cultural services, housing, miscellaneous
goods and services.

Expenditure of Urban Households on Consumption of Services  refers to expenditure of households on services of
various kinds provided by the society.

Urban Households by Income Group  All households in the sample are grouped, by per capita disposable income of the
household, into groups of lowest income, low income, lower middle income, middle income, upper middle income, high
income and highest income, each group consisting of 10%, 10%, 20%, 20%, 20%, 10% and 10% of all households
respectively. The lowest 5% of households are also referred to as poor households.

Engel Coefficient  refers to the percentage of expenditure on food in the total consumption expenditure, using the
following formula:

Engel Coefficient = (expenditure on food / total consumption expenditure) x 100%

II. Rural Households

Rural Households  refer to resident households in rural areas. Resident households in rural areas are the households
residing for more than one year in the areas under the jurisdiction of administration of township governments (excluding
county towns), and in the areas under the jurisdiction of administration of villages in county towns. Migrated households
residing in the current addresses for over one year with their household registration in other places are included in the
resident households of their current addresses. For households with their household registration in one place but all members
of the households moving away for living in another place for over one year, they will not be included in the rural households
of the area where they are registered, irrespective of whether they still keep their contracted land.

Resident Population  refers to population staying at home permanently or for over 6 months during a year and sharing
life economically with the household. Members of the household staying away from the household for over 6 months but
keeping a close economic relation with the household by sending the majority of income to the household are regarded as
resident population of the household. Government staff and workers or retirees living as close members of the household are
also considered as resident population. However, servicemen, students of secondary technical schools or schools of higher
education and persons with stable jobs and residence outside the household (excluding those visiting relatives or seeking
medical service) are not included as resident population of the household. Resident population is used in calculating income,
consumption, accumulation on per capita basis of rural households and in analyzing composition of rural households.

Full/Semi Labour Force  Full labour force refers to persons capable of work, aged 18-50 for males and 18-45 for
females. Semi labour force refers to persons capable of work, aged 16-17 and 51-60 for males and 16-17 and 46-55 for
females. Persons at their working ages but not capable of work are not to be included as labour force. Persons not at working
ages but participating regularly in work are included in semi labour force. For staff and workers as resident population of the
household, they are included as full or semi labour force of the household if they are in the labour force.

Total Income  refers to the sum of income earned from various sources by the rural households and their members during
the reference period, and is classified as income from wages and salaries, income from household operations, income from
properties and income from transfers.

Income from Wages and Salaries  refers to income from labour earned by the members of rural households employed
by other units or individuals.

Income from Household Operations  refers to income by the rural households as units of production and operations.
Operations by rural households are classified by economic activities as agriculture, forestry, animal husbandry, fishery,
manufacturing, construction, transportation, post and telecommunications, wholesale, retail and catering, social service,
culture, education, health, and other household operations.

Income from Properties  refers to the income received as returns by owners of financial assets or tangible non
-productive assets by providing capitals or tangible non-productive assets to other institutional units.

Income from Transfers  refers to the receipt by rural households and their members of goods, services, capitals or
rights of assets without giving or repaying accordingly, excluding capitals provided to them for the formation of fixed assets.
In general, it refers to all income received by rural households through redistribution.

Cash Income  refers to income received by rural households and their members in the form of cash during the reference
period. It is classified, by source of income, into income from wages and salaries,  cash income from household operations,
income from properties and income from transfers

Net Income  refers to the total income of rural households from all sources minus all corresponding expenses. The
formula for calculation is as follows:

Net income = total income – household operation expenses – taxes and fees – depreciation of fixed assets for production –
subsidy for participating in household survey – gifts to non-rural relatives

Net income is mainly used as input for reproduction and as consumption expenditure of the year, and also used for savings
and non-compulsory expenses of various forms. “Per capita net income of farmers” is the level of net income averaged by
population which reflects the average income level of rural households in a given area.

Total Expenditure  refers to total expenses of rural households on production, consumption and redistribution, including
expenditure on household operations, on purchase of productive fixed assets, depreciation of productive fixed assets, taxes
and fees, expenses on household consumption, expenses on properties and expenses on transfers.

Expenditure on Household Operations  refers expenditure by rural households on goods and services consumed
(including own-produced goods) in household-based production or operations. Consumption of own-produced goods which are
not included as household income is not considered as expenditure. Chemical fertilizers and pesticides in stock are not
included as expenditure of the current period.

Expenditure on Purchase of Productive Fixed Assets  refers to expenses by rural households on building or
purchase of productive fixed assets.

Expenditure on Taxes and Fees   refers to taxes and fees of various forms, surcharges, fees retained by villages and
townships, ad hoc fees, and various apportions and contributions to fund-raising, which are paid by rural households, in cash
and in kind, in relation with their production and operations. In areas where reform on taxes and fees is introduced, they are
collected in the form of agriculture tax, tax on special products, surcharges of agriculture tax and tax on special products, ad
hoc fee and other taxes and fees related to non-agriculture activities and operations, as well as various local fees in addition
to those collected in line with state regulations. In areas where reform on taxes and fees is not introduced, they are collected
in the form of various taxes and fees in relation to production and operations, fees retained by villages and townships, and
apportions and contributions to fund-raising.

Expenditure on Household Consumption   refers to expenditure by rural households on their material and cultural life,
including expenditure on food; clothing; housing; household appliances, articles and services; health and medical service;
transportation and communications; articles and services on culture, education and recreation; and other goods and services.

Expenditure on Properties   refers to expenses on the right for other properties (including intangible assets) of the
households.

Expenditure on Transfers   refers to the provision of goods, services, capitals or rights of assets by rural households and
their members without receiving anything accordingly, excluding capitals provided by them for the formation of fixed assets.
In general, it refers to all expenditure by rural households through redistribution.

Cash Expenditure   refers to cash expenditure by rural households for production, consumption and redistribution during
the reference period, including cash expenses on household operations, taxes and fees, purchase of productive fixed assets,
household consumption, and expenses on properties and transfers.