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Limitations of Per capita income?? |
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Answer» second answer is correct just adding one more point.....it is affected by size of population (i) A rise in per capita income is due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development. (ii) National income rises but its distribution makes the rich richer and the poor poorer. Limitations of per capita income was that it ignored several other factors such as health status , literacy level, infant mortality rate etc . Also it does not tell us that how the income is distributed among the citizens of the nation Per capital income=Total National income / Total population |
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