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Per NCERT, what is one IMPORTANT LIMITATION of using per capita income as a development measure?
APer capita is not really a number
BIt does not show DISTRIBUTION of income — two countries with same per capita can have very unequal income distribution
CIt only works for African countries
DIt is impossible to calculate
Answer & Solution
Correct answer: B. It does not show DISTRIBUTION of income — two countries with same per capita can have very unequal income distribution
Per NCERT §Income and Other Criteria, average income hides distribution. Two countries with same average can have very different income inequality.
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