what is the main limitations of average income to be used as a measure of development
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limitations of average income
Explanation:
1. National income rises but its distribution makes the rich richer and the poor poorer. ... (v) If rate of population growth, is higher than the rate of growth of national income, this will lead to fall in per capita availability of goods and services and economic welfare.
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Answer:
per capita income
Explanation:
Per capita income is an average and this average may not represent the standard of living of the people, if the increased national income goes to the few rich instead of giving to the many poor. Thus unless national income is evenly distributed, per capita income cannot serve as a satisfactory indicator of development.
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