why is per capita income not an adequate of indicator of economic development of a country
Answers
Answered by
90
this is so because per capita income = natianl income divided by population but the population include both working and non-working. non working dont contribute anything to the national income still gets a share. Because of this the avergae income is not accurate. Hope it help
Nandinikaushik:
mark it barinlest if it helped u.
Answered by
32
Per capita income not an adequate of indicator of economic development of a country because of the following reasons :
1. Per capita income does not show how equitably a country’s income is distributed.
2. Per capita does do not account for improving the longevity of human life nor the quality of the environment.
3. Per capita income is wealth that determines economic welfare and not current income as such.
Similar questions