Question

Per  capita  income  cannot  be  a  true  measure  of  development.
Why?

DSERT Class 10 Economics Ch. 1 Development

Answer 1

Per capita income does not reveal how the average income is distributed among people in their individual countries. So countries having the same per capita income may differ greatly in the way their per capita income is distributed. One may have great disparities in the distribution of income leading to a wide gap between the rich and the poor while the other may have better distribution of income. The other sources of measure for development like literacy level, healthcare etc. are equally important. Hence per capita income alone cannot be a true measure of development.