Which of the following best explains an important limitation of per capita national income?(1 point)

Question

Responses

Per capita national income does not take total national income into account.
Per capita national income does not take total national income into account.

Per capita national income does not take population size into account.
Per capita national income does not take population size into account.

Wealth distribution in most countries is uniform.
Wealth distribution in most countries is uniform.

Wealth distribution in most countries is uneven.

Answer 1

The best explanation of an important limitation of per capita national income is:

Wealth distribution in most countries is uneven.

Per capita national income is an average that does not reflect how income is distributed among the population. Even if the per capita income is high, it can mask the reality of significant income inequality where a large portion of the wealth is concentrated in the hands of a few, leaving a substantial part of the population with much lower incomes.