Question

What is per capita income mention two limitations of per capita income as a indicator of development

Answer 1

the total income of all citizens of a country divided by the total population is called per capita income ....... the limitations are that it does not tell how many people are poor or rich as it gives average
2) it does not give us the information about the living conditions of people of the country

Answer 2

The total income of all citizens of the country divided by the total population is known as per-capita income.

The limitations are:

• National income raises but its distribution makes the rich richer and poor more poor.
• Although, an increase in output per head is in itself a significant achievement, yet we cannot equate this with an increase in economic welfare.