I. Urban HouseholdsPopulation of urban households refer to members of the hous ehold living and sharing
economically together. All income and expenditure of the pop ulation of the household are included in the income and
expenditure of the hous ehold.

Proportion of urban employment refer to the proportion of employed population to the p opulation 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 s alary, net busines s income, income from
properties, and income from transfers of members of the households, excluding income from selling of propert ies 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 cont ribut ion t o social s ecurity and sample household subsidy for keeping dairies. Following formula is
used:

Disposable income = total income - income tax - personal contribut ion t o social security - sample household subsidy for
keeping dairies

Total expenditure of Urban Households refer to all expendit ure of t he hous eholds 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 t otal exp enditure of the sample households for consump
tion 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, educat ion and cultural services, housing, miscellaneous
goods and services.

Expenditure of Urban Hous eholds on Consumpti on of Service s refers to exp enditure of households on services of
various kinds provided by the society.

Urban Households by Income Group All households in the sample are group, by p er capit a dispos able income of t he
household, into group s of lowes t income, low income, lower middle income, middle income, upp er middle income, high
income and highest income, each group cons isting of 10%, 10%, 20%, 20%, 20%, 10% and 10% of all hous eholds resp
ectively. The lowest 5% of households are also referred to as poor households.

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

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

II. Rural Households

Rural Households refer to resident hous eholds in rural areas. Resident hous eholds in rural areas are the households
residing for more than one year in the areas under the jurisdiction of administrat ion of township governments (excluding
county towns), and in the areas under the jurisdiction of administ ration of villages in county towns. Migrated households
residing in the current addresses for over one year with their household registration in other p laces are included in the res
ident households of their current addres ses . For hous eholds 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 life with the household by sending t he 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 t echnical s chools 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 p opulation of t he household. Resident pop ulat ion is used in calculat ing
income, consump tion, accumulation on per capita basis of rural households and in analyzing compos ition 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 s emi 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 hous ehold operations, income from
propert ies and income from transfers.

Income from Wages and Salaries refers to income from labour earned by the members of rural households employ ed
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 agricult ure, forestry, animal husbandry, fishery,
manufacturing, construction, transportation, post and telecommunications, wholesale, retail and catering, social service,
culture, educat ion, healt h, and other household operat ions.

Income from prope rties refers to the income received as returns by owners of financial assets or tangible non-productive
assets by p roviding capitals or t angible non-productive assets to other institutional units.

Income from Transfers refers to the receipt by rural households and their members of goods, services, capit als or rights
of assets without giving or repaying accordingly, excluding capitals provided to them for the formation of fixed asset s. 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 op erat ions,
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 - t axes and fees - depreciation of fixed as sets for production -
subsidy for participating in hous ehold survey - gifts t o non-rural relat ives

Net income is mainly used as input for reproduction and as consumption expendit ure of the year, and also used for savings
and non-compulsory expenses of various forms. "Per capit a 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 exp enses of rural households on production, consumption and redistribut ion, including
expenditure on household operat ions, on purchase of productive fixed as sets, dep reciation of product ive fixed assets, t
axes and fees, expenses on household consump tion, expenses on properties and expenses on trans fers.

Expenditure on Household Operations refers expenditure by rural households on goods and s ervices consumed
(including own-produced goods) in hous ehold-based production or operations. Consumption of own-produced goods which
are not included as household income is not considered as expendit ure. Chemical fertilizers and pest icides in s tock are not
included as expenditure of the current p eriod.

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
township s, ad hoc fees, and various app ortions and cont ributions to fund-raising, which are paid by rural households, in
cash and in kind, in relation wit h 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 t ax and tax on special p
roducts , 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 wit h st ate regulat ions . In areas where reform on taxes and fees is not int roduced,
they are collected in the form of various taxes and fees in relation t o production and operations, fees retained by villages
and townships, and app ortions and contributions to fund-raising.

Expendi ture on Hous ehold 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;
transport ation and communications ; articles and services on culture, educat ion and recreation; and other goods and
services.

Expendi ture on Properti es refers t o expenses on t he 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 wit hout receiving anyt hing accordingly, excluding cap itals p rovided by t hem for t he
formation of fixed assets. In general, it refers to all expenditure by rural households through redistribution.

Cash Expenditure refers to cash exp enditure 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 ass ets,
household consumption, and exp enses on properties and t ransfers.