Which of the following best explains an important limitation of per capita national income? (1 point) Per capita national income does not take population size into account. Wealth distribution in most countries is uniform Wealth distribution in most countries is uneven . Per capita national income does not take total national income into account
Per capita national income does not take population size into account.
Wrong answer
I apologize for the incorrect response. The correct answer is: Per capita national income does not take wealth distribution into account.
The best explanation for an important limitation of per capita national income is that it does not take population size into account. Per capita national income is calculated by dividing the total national income by the population. However, this measure does not consider the size of the population, resulting in potential misleading conclusions. For example, if two countries have the same per capita national income, it may seem that their citizens have similar levels of prosperity. However, if one country has a much larger population, the overall welfare of its citizens may be significantly lower than the other country. To account for this limitation, it is essential to consider other indicators such as wealth distribution and total national income.
