what are the limitations of percapita income ?
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Answered by
3
Consider two countries with population of 10 person....
In first country,
1 person of the 10 earns Rs 10,000 and the other 9 earns Rs 1,000 each..
Per capita income = 9,500
In second country,
Every person earns Rs 9,500 each....
Per capita income = 9,500
In the first country the number of poor in first country is more than that of second country...
So, we can say that only per capita income is not considered to compare two countries...
In other words, per capita income does not show the standard of living of its all citizens..
In first country,
1 person of the 10 earns Rs 10,000 and the other 9 earns Rs 1,000 each..
Per capita income = 9,500
In second country,
Every person earns Rs 9,500 each....
Per capita income = 9,500
In the first country the number of poor in first country is more than that of second country...
So, we can say that only per capita income is not considered to compare two countries...
In other words, per capita income does not show the standard of living of its all citizens..
Shouryagiri:
ur first country per capita income is wrong
Answered by
1
per capita income does not reflect the standard of living of people.
per capita income cannot serve as satisfactory indicator of development
per capita income cannot serve as satisfactory indicator of development
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