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.

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.

Per capita national income does not take total national income into account.

Answer 1

The statement that best explains an important limitation of per capita national income is:

Wealth distribution in most countries is uneven.

Per capita national income averages the income across a population, which can obscure significant disparities in wealth distribution and may not accurately reflect the economic well-being of all individuals within a country.