Geography, asked by priyankakpkpri7143, 1 year ago

what is per capita income?write two limitations

Answers

Answered by devrajsinghrajput
2
the total income of a country divided by it's total population is called per capita income and it's limitations are as the total population also includes children below 18 who are not in cat of uaf and second is some of the people are very rich whereas some are poor but it's give the income by taking the whole
Answered by Anonymous
0

Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population. Per capita income is national income divided by population size. 

The limitation of this criterion are:

Per capita income is useful for comparison but it doesn't show the distribution of income.

It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.

Per capita income does not give the true picture as there is a huge population which does not earn at all like children and the senior citizens but they are also included while calculating per capita income. National income rises but its distribution make the rich richer and the poor poorer.

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