Per capita income cannot be a true measure of development. Why?

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Solution

Per capita income cannot be a true measure of development because it:
(i) Does not reveal the distribution of income.
(ii) May not increase the standard of life.
(iii) Does not take into consideration education or health.

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Q. Why is per capita income not an adequate indicator of the economic development of a country?

Q. Why is the per capita income of a country a better indicator of development than just the total income?

Kerala, with a lower per capita income, has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

Q. Kerala, with lower per capita income, has a better human development ranking than Punjab. Hence, per capita income is not a useful criterion at all and should not be used to compare states. Do you agree? Discuss.

Q. Assertion (A): Per capita income cannot be considered a helpful measure to judge the welfare of the citizens.

Reason (R): Per capita income is just the average income of the country.

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Per capita income cannot be a true measure of development. Why?

Per capita income cannot be a true measure of development because it:(i) Does not reveal the distribution of income.(ii) May not increase the standard of life.(iii) Does not take into consideration education or health.

Per capita income cannot be a true measure of development because it:
(i) Does not reveal the distribution of income.
(ii) May not increase the standard of life.
(iii) Does not take into consideration education or health.