"Though per capita income is a good criteria or comparison, it hides disparities." Justify.
Answers
What is Per Capita Income?
Per capita income refers to the average income of a person in a country. Per capita income of a specific country or area is calculated by dividing the total income of that area by the total population of that area.
Why does Per Capita income hide disparities?
⇢ Per capita income is solely based on income and money. Its calculation doesn't include factors like the health of the society, health care facilities, literacy rate, poverty, infant mortality rates, etc.
⇢ Per capita income doesn't consider the accumulation of resources/money in one person's hands, i.e, it doesn't ensure the equitable distribution of money in the area, hence it isn't an accurate representation of the area's standing.
Conclusion:
In conclusion, covering only the economic aspects of the country will not provide accurate information regarding the status of the country, or the contentment of the people residing in the country. Hence, it hides the citizens' disparities since money is the major factor.
Answer:
Per capita income is an essential measure for development and is considered to be one of the most essential features for analyzing nations but it endures from the following conditions:
1. The per capita income does not tell us anything about the distribution of income. For instance, a rich nation with an unequal distribution of income would be much lower than a weak nation with a more equitable distribution of income.
2. The per capita income does not evolve numerous amenities & assistance that affect the quality of life, for example, education facilities, health facilities, etc.
3. The size of population influence the per capita income. Likewise, a large national income, per capita income would be low if a nation has a huge population.