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 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

Answer 1

The response 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 obscure significant disparities in how wealth is distributed, leading to an incomplete understanding of economic well-being within a country.