What is per capita income? What …

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What is per capita income? What are its limitation

Posted by Suraj Kumar 6 years, 9 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 6 years, 9 months ago

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:

It does not tell us whether there is equal or unequal distribution of income in a country.
Apart from per capita income, there are other important aspects of developments such as literacy and health ratio of the people in a country.

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CBSE > Class 10 > Social Science