Question

The per capita income of India is more than that of Nepal. In India, the richest 10% of people own 80.7% of the wealth. In Nepal, 57% of the people own 66% of the wealth.

Is India more developed than Nepal? Justify.

• A. No, more wealth in Nepal led to more development.
• B. No, there is inequal distribution of wealth in India.
• C. Yes, India's per capita income is more than that of Nepal.
• D. Yes, the rich contribute more to the economy than the poor.

Answer 1

The correct option is B No, there is inequal distribution of wealth in India.

Per capita income cannot be used to compare countries because it does not consider how wealth is distributed among its people. While some people might have much more than what they can spend, others might struggle to make ends meet.