7.
4. What is the main criterion used by the World
Bank in classifying different countries? What
are the limitations of this criterion, if any?
Answers
Answer:
Answer Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are: • It doesn't show distribution of income. It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.
Per Capita Income is the main criterion used by the World Bank in classifying different countries. The limitation of this criterion are:
Per capita income is useful for comparison but it doesn't show the distribution of income.
It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.
Per capita income does not give the true picture as there is a huge population which does not earn at all like children and the senior citizens but they are also included while calculating per capita income. National income rises but its distribution make the rich richer and the poor poorer.