Question

reasons why the per capita income is not a better measure of the welfare of the group of persons living in a community?

Answer 1

Per Capita Income is not an adequate indicator of economic development for the following reasons:

•It is an average amount of the total income which means it can't show the actual income status of a country.

•Only Per Capita Income can not indicate the development of a country alone.

•It needs other criterion to judge the economic development like literacy rate.

•Health status of the citizen is also another criteria for indicating the economic development.

•Distribution of income amongst rich and poor class people is not reflected in the concept of per capita income.