Question

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

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

Answer 1

The statement that best explains an important limitation of per capita national income is:

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

Per capita national income averages income across the population, which can mask inequalities in income distribution. As a result, per capita income might suggest a higher standard of living for the average citizen than what is actually experienced, especially in countries where wealth is concentrated in the hands of a few.