Question

what are the merits and demerits of comparing countries on the basis of per capita income​

Answer 1

Demerits of Per Capita Income :- Following are the demerits of per capita income. 1) It does not indicate the disparities in the distribution of income e.g. it does not show the wide gap between the incomes of very rich and the very poor people. It is just a mean value so, it does not reflect the income distribution.