Question

what are the limitation of per capital income​

Answer 1

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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Answer 2

● It shows high disparities.

● It does not gives a true picture regarding distribution of income.

● It does not gives information regarding non materialistic things.