alleryWhy might per capita income alone be a poor measure of development?
AIt hides inequality in income distribution
BIt cannot be measured accurately
CIt is always inflated by governments
DIt double-counts agricultural income
Answer & Solution
Correct answer: A. It hides inequality in income distribution
1. Two countries can have identical average income but very different distribution.
2. Per capita income hides whether everyone is better off or only a few are.
3. The Country A vs Country B example in the chapter illustrates this clearly.
_Source: syllabus Understanding Economic Development, Ch 1 "Development"_
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