Q.Write any two limitations of per capita income as an indicator of economic development.

The experts of the United Nations Organization (UNO) recommended per capita income as an indicator of economic development — option (b).

Per capita income (PCI) = National Income ÷ Total Population. It measures the average income available to a person in a country and was long used as the simplest single indicator to compare the level of development between nations. A committee of experts appointed by the United Nations Organization recommended its use for …

Per capita income = national income of a year ÷ total population of that year; it is the average annual income of one person.

Per capita income (PCI) is the average income earned per person in a given area (a country or state) during a specified period, usually one year. It is calculated as:

$\text{Per capita income} = \frac{\text{National income of the year}}{\text{Total population of that year}}$

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