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What are the limitations of using per capita income as a criterion for classification of countries

Posted by Fatima Rehna 6 years, 6 months ago

CBSE > Class 10 > Social Science

1 answers

Yogita Ingle 6 years, 6 months ago

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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