Question

"Only the per capita income cannot reflect the true state of economic development". Why?

Answer 1

Explanation:

The per capita income can not reflect the true state of economic development because if the income of a particular group have increased or have become rich and the income of other groups remain the same, it will reflect an increase in the per capita income.

Answer 2

Per capita income means income per head. It is the average income of the person in a country. However true state of economic development cannot be understood by per capita income only as it does not tell about how the income is distributed among the citizens of country. Also education and health are also major factors to know about a country's development.

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