Question

discuss the limitations of the use of per capita income by the World bank as a measure of classification country​

Answer 1

Per capita income is also known as average income.

For comparison between countries total income is not a useful measure since countries have different population comparing total income will not tell us what an average person is likely to Earn hence we compare the average income which is the total income of the country divided by its total population. in world development report brought out by the World bank ,this criterion is used to classify countries countries with per capita income of US dollar 12736 per annum and above in 2013 are called rich countries and those which per capita income of US dollar 1045 or less are called low income countries India comes in the category of low middle income countries because its per capita income in 2013 was just US dollar 1570 per annum

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