Which of the following is NOT a limitation of Per Capita Income as an indicator of economic welfare?

medium Q4 of 15

Economic Awareness - Sectors of Indian Economy

AIt does not reflect income distribution among the population

BIt ignores non-monetary aspects like health and education

CIt does not consider differences in cost of living across regions

DIt accounts for the total wealth accumulated by a country

Step-by-Step Solution

Step 1: Understand limitations
Per Capita Income measures average income but ignores distribution, non-monetary factors, and regional cost differences.
Step 2: Analyze options
"It accounts for the total wealth accumulated by a country" incorrectly states it accounts for total wealth, which is not true; Per Capita Income measures income flow, not accumulated wealth.
Final Answer:
It accounts for the total wealth accumulated by a country → Option D
Quick Check:
It accounts for the total wealth = correct ✅

Quick Trick: Remember Per Capita Income measures average income, not wealth stock.

Common Mistakes:

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