Question

What are the limitations of per capita income criteria of development?

Answer 1

Answer:

Limitations of per capita income are :

1. 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.
2. National income rises but its distribution makes the rich richer and the poor poorer.Jun 28,

Answer 2

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.