Question

per capita income and 2 limitations of per capita income

Answer 1

per capita income is the ratio of the total income of the country to the total population of the country

per capita income = total income of the country / total population of the country

limitations:

1) it does not include the health condition of the people

2) it hides the poverty of few individuals

3) it does not show any infrastructural development of a country  

Answer 2

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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.