write the limitations of per capita income
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Limitations: Per capita income as an indicator of development has the following limitations: ... Per capita income is an average and this averagemay 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.
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The limitation of this criterion are:
Per capita income is useful for comparison but it doesn't show the distribution of income.
It also ignores other factors such as infant mortality rate, literacy level, healthcare, etc.
Per capita income does not give the true picture as there is a huge population which does not earn at all like children and the senior citizens but they are also included while calculating per capita income. National income rises but its distribution make the rich richer and the poor poorer.
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