what is the main Criterion used by the World Bank in classifying different countries? what are the limitations of the above Criterion if any?
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Answered by
12
The main criterion used by the World Bank in classifying different countries is per capita income that is total income divided by total population.
Limitations of using per capita income as criteria :
1.It does not tell the proper distribution of income.
2.One factor cannot determine a country.
3.It does not indicate long term sustainibility.
4.Method of calculating per capita income also varies.
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Limitations of using per capita income as criteria :
1.It does not tell the proper distribution of income.
2.One factor cannot determine a country.
3.It does not indicate long term sustainibility.
4.Method of calculating per capita income also varies.
HOPE IT HELPS U!!!!
Answered by
5
Answer:
The main criterion used by the World Bank in classifying different countries is the per capita income or average income of a person in a country.
Limitations of this criterion:
It does not tell us about how this average income is distributed among the people in the individual countries. Two countries with the same per capita income might be very different with regard to income distribution. One might have equitable distribution of income while the other might have great disparities between the rich and the poor.
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