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

Wealth distribution in most countries is uniform

Answer 1

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

Wealth distribution in most countries is uneven.

This option highlights the fact that per capita national income may give a misleading picture of the average income when income is distributed unequally, as it does not reflect the disparities in income among individuals within a country.