Question

like other average figures,per capita income may not reflect the real economic condition.Justify the statement

Answer 1

Per capita income does not reflect the standard of living of the people. 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. It os most probable that the PCI may be equal for two countries but those countries may themselves have q lot of disparities apart from the rich and poor, there even may be a great difference in the HDI of the two nations.
Thus as a whole it can be said that unless national income is evenly distributed, per capita income cannot serve as a satisfactory indicator of development and thus may not reflect the actual economic condition.

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