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What is per capita income? What are its limitation |
| Answer» Per capita income or average income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It is calculated by dividing the area\'s total income by its total population.Per capita income is generally used as an index for classifying the development of a country but it has the following limitations:\tIt does not tell us whether there is equal or unequal distribution of income in a country.\tApart from per capita income, there are other important aspects of developments such as literacy and health ratio of the people in a country. | |