A) Which of the following best explains an important limitation of per capita national income?
(1 point)
Wealth distribution in most countries is uneven.
Per capita national income does not take population size into account.
Wealth distribution in most countries is uniform.
Per capita national income does not take total national income into account
Per capita national income does not take total national income into account.
A) Which factor is included in the human development index (HDI)? (1 point)
obesity rates
automobile ownership
environmental pollution levels
life expectancy
life expectancy
The correct answer is B) Per capita national income does not take population size into account.
To understand why this is an important limitation of per capita national income, we need to understand what per capita national income is. Per capita national income is a measure of the average income earned by each individual in a country. It is calculated by dividing the total national income of a country by its population size.
However, per capita national income does not consider the size of the population. This means that a country with a high per capita national income may still have a large number of people living in poverty if its population is large. On the other hand, a country with a low per capita national income may have a better living standard for its population if it has a smaller population.
So, the limitation is that per capita national income alone does not give a complete picture of the economic well-being of a country's population, as it does not take into account the size of the population.