Question

what are the limitation of per capita income(write 5short points)​

Answer 1

Answer:

Step-by-step explanation:

The limitations of the per capita income are :-

• It does not show the gap between rich and poor people
• It does not show the growth of nation in different important fields such as education , healthcare , infrastructure , etc.
• It does reflect some important topics such as infant mortality rate , literacy rate , etc .
• A rise in per capita income is due to rise in prices and not due to an increase in physical output and so it is not a reliable index of economic development .
• It does not indicate long term sustainability .

Answer 2

Answer:

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.

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