Q8-Define percapita Income ? Mention its two limitations

1.	Q8-Define percapita Income ? Mention its two limitations
Answer» Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population Limitationsofper capita incomeare : (i) A rise inper capita incomeis due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development. (ii) Nationalincomerises but its distribution makes the rich richer and the poor poorer. what is it 2 limitation

Answer»

Per capita income or average income measures the average income earned per person in a given area in a specified year. It is calculated by dividing the area's total income by its total population

Limitationsofper capita incomeare : (i) A rise inper capita incomeis due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development. (ii) Nationalincomerises but its distribution makes the rich richer and the poor poorer.

what is it 2 limitation

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