Explain the role of per capita income and economic welfare as indicator of development
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Answered by
30
Per capita income = National Income/ Total Population of country.
Per capita income is a better index of economic development than national income/GDP itself.
However, it suffers from certain major limitations as an indicator of welfare and development :
Per cap income doesn't show the actual standard of living enjoyed by the common people. Per capita Y does not reflect the level of healthcare, education and such essential infrastructure facilities enjoyed by the people, which are essential benchmarks for development.NOTE: Economic development is more about the welfare of public than just income.
Per capita income is a better index of economic development than national income/GDP itself.
However, it suffers from certain major limitations as an indicator of welfare and development :
Per cap income doesn't show the actual standard of living enjoyed by the common people. Per capita Y does not reflect the level of healthcare, education and such essential infrastructure facilities enjoyed by the people, which are essential benchmarks for development.NOTE: Economic development is more about the welfare of public than just income.
Answered by
50
Hey mate
because per capita income is the income which is consumed by every citizen of the country. (ie.) national income / population.
as the amount of pler capilta income increases ,l the economic growth of the country increases.
Hope it helps uh
because per capita income is the income which is consumed by every citizen of the country. (ie.) national income / population.
as the amount of pler capilta income increases ,l the economic growth of the country increases.
Hope it helps uh
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