Question

what are the limitations of per capita income ?

Answer 1

Hi student,

Here is the answer to your quesry

The following are the limitations of per capita income as a measure of comparison:

It does not indicate the disparities in the distribution of income. E.g. the wide gap between the incomes of extremely rich and very poor people.

It does not indicate long-term sustainability as non-renewable resources are liable to be exhausted.

The method of calculating per capita income also varies among countries. This, it is not highly reliable for comparisons.

Hope this provides a solution to your question.

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