Question

Define per capita income what are the limitations of per capita income criteria of development

Answer 1

Answer:

the per capita income of a country can be found out by dividing the total national income by total population. a rise per capita income is due to rise in price and not due to increase in physical output it is not a reliable index of economic development

Answer 2

Answer:

Define per capita income what are the limitations of per capita income criteria of development.

Explanation:

What is per capita income?

• Per capita income is a measure of the amount of money earned per person in a nation or geographical 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.

What are limitations of per capita income-

• Per capita income as a metric has limitations that include its inability to account for inflation, income disparity, poverty, wealth or savings.
• Per capital income is the average income of a country.
• Per capita income criteria takes into account only the economic aspect of life and ignores the social aspect of life.
• Per capita income criteria ignores education, health, life expectancy, sanitation etc.