State with reasons, whether you agree or disagree with the following s

1.	State with reasons, whether you agree or disagree with the following statements: Per Capita Income (PCI) is a superior indicator than Per Capita Consumption (PCC).
Answer» No, I do not agree with the above statement. [PCC is a superior indicator than PCI] Reasons: PCI refers to the annual average income of a person, whereas, PCC indicates the extent of material well‐being and the standard of living of the people in an economy. PCI is an indicator of economic productivity, whereas, PCC is an indicator of standard of living of the people. PCI is derived by dividing the National Income by the Total Population of an economy, whereas, PCC is derived by dividing the Total Private Consumption Expenditure of a nation by its Total Population. However, PCC is considered as more realistic and practical indicator when compared to PCI as it reflects the standard of living of people. PCC also reflects the level of poverty and income inequality in an economy. Thus, Per Capita Consumption (PCC) is a superior indicator than Per Capita Income (PCI).

State with reasons, whether you agree or disagree with the following statements: Per Capita Income (PCI) is a superior indicator than Per Capita Consumption (PCC).

Answer»

No, I do not agree with the above statement. [PCC is a superior indicator than PCI]

Reasons:

PCI refers to the annual average income of a person, whereas, PCC indicates the extent of material well‐being and the standard of living of the people in an economy.
PCI is an indicator of economic productivity, whereas, PCC is an indicator of standard of living of the people.
PCI is derived by dividing the National Income by the Total Population of an economy, whereas, PCC is derived by dividing the Total Private Consumption Expenditure of a nation by its Total Population.
However, PCC is considered as more realistic and practical indicator when compared to PCI as it reflects the standard of living of people.
PCC also reflects the level of poverty and income inequality in an economy.

Thus, Per Capita Consumption (PCC) is a superior indicator than Per Capita Income (PCI).