Question

Limitation of per capita income

Answer 1

limitations of per capital income could be understood by the following points :

1.it's only average so,it's cannot describe the standard of living of a person in a particular area.
2.it does not tell about others important things like Healthcare literacy rate education systemy environment many more which are pillars for good infrastructure of particular country.

Answer 2

For Example :- Let two countries has population of 10 persons

In the first country,

1 person of the 10 earns Rs 10,000 while the other 9 earns Rs 1,000 each.

Per capita income = 9,500

In second country,

All person are earning Rs 9,500 each.

Per capita income = Rs 9,500



Now,

Come to the conclusion

The per capita income of both the countries are same but we can't get to know how many rich and poor person are there in the country.


So, By this we can say that per capita income is not the only thing that can be considered in a country's development...



Hope it will help you.......