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 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.

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.

This highlights that per capita income does not reflect inequalities within a country, as it averages the income across the population without showing how wealth is distributed among individuals.