Question

What is maimln criterion used by the word bank in classifying different cointries?What are the limitations of tje above criterion ,if any?

Answer 1

The main criterion used by the World Bank in classifying different countries is Per Capita Income.

Limitations of Per Capita Income are:-

1.Estimation of national income,does not tell us anything about the purchasing power of each currency.

2.It is affected by the size of population.

3.It does not tell us about the distribution of income.