Question

what is per Capita income how it is calculated mention it's limitations
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Answer 1

Answer:

per capita income is also known as income per person , is the mean income of people in an economic unit such as a country or city.

It is calculated by taking a measure of all sources of income in the aggregate and dividing it by total population.

LIMITATIONS-

* 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 it's distribution makes the rich richer and the poor poorer.

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