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.

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

Wealth distribution in most countries is uneven.
Wealth distribution in most countries is uneven.

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

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 provides an average income per person, but it does not reflect how that income is distributed among the population. Thus, two countries with the same per capita income could have very different distributions of wealth, leading to different living standards for individuals within those countries.