Do you think per capita income is a good indicator of Development? If not, give reason in support of your
answer.
Answers
Explanation:
Per Capita Income as a Growth Indicator : Dividing GDP/GNP by the total population one gets per capita GDP/GNP. Conventionally, per capita income is used as an index of development. ... Greater the income, higher the standard of living of people, and lower the incidence of poverty and inequality.
❥ ANSWER᭄
✏Per capita income is an average and this average may not represent the standard of living of the people, if the increased national income goes to the few rich instead of giving to the many poor.
✏Thus unless national income is evenly distributed, per capita income cannot serve as a satisfactory indicator of development.
✏Per Capita Income is not an adequate indicator of economic development for the following reasons :
● It is an average amount of the total income which means it can't show the actual income status of a country. ...
● It needs other criterion to judge the economic development like literacy rate.
✏Per capita income is not a true measure of the Development because:-
It only tells us about average income not how income is distributed among the people.