why per capita income is considered as the better measure than GDP but not the best measure of development
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Let us take 2 countries as examples
India and Sweden
India is the one of the highest national incomes due to the population
On the other hand our country is home to the least income generators...
Sweden has less population thus have a comparatively poor income
But it has one of the richest per capita ( I mean by individuals with money)
So our comparison says that gdp is not a good source as many countries with large population take will have advantage.
But when u choose per capita income we can say that which country is rich
India and Sweden
India is the one of the highest national incomes due to the population
On the other hand our country is home to the least income generators...
Sweden has less population thus have a comparatively poor income
But it has one of the richest per capita ( I mean by individuals with money)
So our comparison says that gdp is not a good source as many countries with large population take will have advantage.
But when u choose per capita income we can say that which country is rich
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