Question

mention the limitations of PCI as an indicator of development​

Answer 1

Answer:

Following are the demerits of using per capita income solely as a measure of development :-

1. Per capita Income does not tell us how the income is distributed among the people.

2. It hides disparities. Some may be very rich but the masses may be poor.

3. Per capita Income can't be regarded as the sole indicator of development but other areas are also important like Life expectancy, Infant mortality rate , Literacy rate , gender equality etc.

4. Per capita doesn't tell us what an average person is likely to earn.