Why is per capita income not an adequate indicator of economic development of a country? Explain


  1. It does not show how equitably a country’s income is distributed
  2. It does do not account for improving the longevity of human life nor the quality of the environment, such as pollution, environmental degradation, health, education, etc.;  particularly in underdeveloped countries
  3. And finally, I feel that despite the fact that per capita income affects material welfare, it is wealth that determines economic welfare and not current income as such.

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