What are the three main limitations of using per capita income as an indicator of development?
Answer by Student
The three main limitations of using per capita income as an indicator of development are:
- It does not reflect the distribution of income among the people. It can hide the inequalities and poverty that exist within a country or a region.
- It does not reflect the non-monetary aspects of well-being such as health, education, environment, freedom, etc. It can ignore the quality of life and human rights that affect the people’s happiness and satisfaction.