Question

What is per capita income what is the demerit.to.be taken.as index comparison?

Answer 1

Per capita income:

Per capita income is defined as the total income of the country divided by total population of that particular country.

Per capita income is one of the criterion based on which we measure development of different countries or states.

World Bank considers only Per capita income as its major criterion to measure development of different countries.

Demerits of Per capita income :

1.Per capita income does not describes the condition of country's people.

2.Calculating per capita income varies from countries to countries.

3.Per capita income decreases the role of rich and poor and shows that all the people are having the same income,which is wrong.

4.Per capita income does not tells us about the other factors like literacy rate,net attendence ratio,etc which is a drawback.

Thus,we can conclude that Per capita is one of the criterion to measure development of states or countries but it is not only the criterion.

Hope it helps u!!!!!