Question

What are the limitation of the per capita income criteria of development

Answer 1

1.It does not indicate the disparities in the distribution of income. E.g. the wide gap between the incomes of extremely rich and very poor people.

2. It does not indicate long-term sustainability as non-renewable resources are liable to be exhausted.

3.The method of calculating per capita income also varies among countries. This, it is not highly reliable for comparisons.

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Answer 2

Per capita income refers to the average income of individuals, in a particular area. The increase in per capita income has many limitations. Income per capita gets increased when the price of commodity gets diluted, and not because of productivity.

These are not a good sign of good economic conditions, for any nation, it is the indication of economic degradation of a nation.