Question

per capita income heights disparities and does not give us true picture of country's development​

Answer 1

Suppose two territories each having 2 citizens each. Let the individual income of territory A be ₹100 and ₹200 and that of  territory B be ₹20 and ₹280. In both the cases per capita income of both the territories is ₹150 but you can clearly see the variation between the incomes of the citizens of both the territories. The same applies for the per capita income of countries.

For more details refer boxed example in class 10th NCERT Economics textbook.

Plz. rate!  

Answer 2

Per Capita income ,, a criterion used by WORLD BANK
It's Limitations ....

a) National income is estimated in the domestic currency if each country. This is converted into dollars which does not tell us anything about the purchasing power of each country.

b) per capita income is affected by a population of a country. if a country has a large population its per capita income will be low , despite having a large National income.

c) per capita Inc does not tell us anything about the distribution of income in the country. One country might have equitable distribution of income , while another might have great disparities in the distribution between people of the higher strata and the lower strata of society.
d) it does not tell us anything about the availability of various services and facilities that influence quality of life. even countries with high capita income lack good health facilities, sanitation etc....

Hope It Helps...