Question

Limitations of per capita incom

Answer 1

Answer:

It doesn't hide disparities.

It doesn't show the income distribution among the people.

Answer 2

Explanation:

Limitations of per capita income are :

(i) A rise in per capita income is due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development.

(ii) National income rises but its distribution makes the rich richer and the poor poorer.