Question: Why is “Per Capita Income” not an adequate indicator of economic development of a country? Explain. (Board Term-I, (67), 2012)
Answer: (i) Per capita income is the average income. It is income per head of the population per year.
(ii) Per Capita Income = Total income of country Total population
(iii) It is not an adequate indicator because :
(a) It does not tell us how this income is distributed. Per Capita Income might not be the income of every individual in the state.
(b) Life expectancy and Infant Mortality Rate are other important criteria for measuring development.
(c) Education and literacy level are other indicators of development.
(d) Pollution free environment, less corruption, gender equality etc. are also important.