Question

.what are the limitations in the use of per capita income as an index of economic development?​

Answer 1

Answer:

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.

Answer 2

• 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.
• National income rises but its distribution makes the rich richer and the poor poorer