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

Question

Responses

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.

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.

Answer 1

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

Wealth distribution in most countries is uneven.

This statement highlights how per capita national income can give a misleading impression of the economic well-being of a population because it does not account for how income is distributed among individuals within a country.