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.

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

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 provides an average income per person, but it does not reflect the distribution of income within a population. As a result, situations where a small portion of the population holds a significant portion of the total income can lead to misleading interpretations of economic well-being.