mention any one limitations of per capita income ad an indicator of development
Answers
Answer: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.
Answer:
The limitation in exploitation per capita financial gain as associate degree indicator of development are often explained as below:
1. It doesn't tell something regarding the distribution of financial gain. There may well be a level of a most a part of wealth within the hands of a number of. A poor society with equal distribution of wealth is better than a richer country with unequal distribution of financial gain.
2. The per capita financial gain doesn't take into thought numerous facilities that influence the standard of life, such as, education, health facilities.
3. It's plagued by the dimensions of the population. Per capita financial gain are going to be low albeit the value is high, however the country incorporates a giant population.
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