What is the use average and its limitation
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per capital income or average of a country income is most important Criterion for development.it is considered to be one of the most important attribute for comparing two countries but it has in own limitations
1.
it does not tell us anything about distribution of the income a poor country with more equal distribution of the country would be better that the richer country with unequal distribution of income .
2.
does not measure various facilities and services that influence the quality of living such as health sanitation education and equal treatment .
3.
it is affected by the size of population .even with the large national, income per capital income will be low if the country has large population
I HOPE THIS WILL HELP YOU.
1.
it does not tell us anything about distribution of the income a poor country with more equal distribution of the country would be better that the richer country with unequal distribution of income .
2.
does not measure various facilities and services that influence the quality of living such as health sanitation education and equal treatment .
3.
it is affected by the size of population .even with the large national, income per capital income will be low if the country has large population
I HOPE THIS WILL HELP YOU.
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