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 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.

Wealth distribution in most countries is uneven.

Answer 1

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

Wealth distribution in most countries is uneven.

Per capita national income provides an average income per person, but it does not account for how that income is distributed among the population. A high per capita income might mask significant inequalities, where a small percentage of the population holds a large portion of the wealth, while many others may live in poverty.