Question

Mention any one limitation of per capita income as an indicator of development

Answer 1

Limitations of Per capita income as an indicator of development:

1.It does not indicate the disparities in the distribution of incomes .

Example:The wide gap between the incomes of the extremely rich and very poor people.

2.It does not indicate long term sustainability as non renewable resources are liable to be exhausted.

3.The method of calculting per capita income also varies among different countries.Thus,it is not highly reliable for comparison.

4.The data represented by per capita income is only theoritically possible and not practically.

5.It does not play a major part in classification of nation.

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Answer 2

Answer:

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Explanation:

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