Economic Awareness - Sectors of Indian Economy
Which of the following best explains why Per Capita Income may not accurately reflect the standard of living in a country?
Which of the following best explains why Per Capita Income may not accurately reflect the standard of living in a country?
medium Q7 of 15
Step-by-Step Solution
Step 1: Understand limitations
Per Capita Income is an average and does not show how income is distributed.Step 2: Analyze options
"It does not consider income inequality among citizens" correctly identifies income inequality as a limitation. The other options are factually incorrect because Per Capita Income includes income from all sectors (agriculture, industry, services) and the entire population (urban and rural).Final Answer:
It does not consider income inequality among citizens → Option BQuick Check:
Does not consider income inequality = correct ✅
Quick Trick: Remember averages hide disparities in income distribution.
Common Mistakes:
- Assuming Per Capita Income covers all sectors or populations selectively.
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