What is per capita income ? How it is calculated ? Why is per capita income not an adequate not an adequate indicator of economic development of a country ? Explaib?
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When the total income of the country is divided by its population, we get per capita income. It is not an adequate indicator because :
(a) It does not tell us how this income is distributed. Per Capita Income might not be the income of every individual in the state.
(b) Life expectancy and Infant Mortalityt Rate are other important criteria for measuring development.
(c) Education and Iiteracy level are other indicators of development.
(d) Pollution free environment, less corruption, gender equality etc. are also important.
PER CAPITA INCOME=
TOTAL INCOME OF COUNTRY
TOTAL POPULATION
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