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.

While per capita national income provides an average income per person, it does not account for how income is distributed among the population. This means that even if the average is high, many individuals may still be living in poverty if wealth is concentrated in the hands of a few.