Which of the following best explains an important limitation of per capita national income?(1 point) Responses
Per capita national income does not take total national income into account.
Wealth distribution in most countries is uniform.
Per capita national income does not take population size into account.
Wealth distribution in most countries is uneven.
Per capita national income does not take population size into account.
A country with limited farmland imports most of its food.
Which of the following is an example of the connection between economic scarcity and economic development?(1 point) Responses
A country with ample water resources suffers from a shortage of safe drinking water.
A country with rich coal deposits invests in mining technology.
A country with limited farmland imports most of its food.
A country with few forests suffers from a shortage of building materials.
The correct response is: Per capita national income does not take population size into account.
Per capita national income is a measure that calculates the average income per person in a country by dividing the total national income by the population size. However, it does not account for the population size itself. This means that a country with a high per capita national income may still have a significant proportion of its population living in poverty if the overall population is large. On the other hand, a country with a low per capita national income may have a relatively small population, which can make the average income appear higher than it actually is. Therefore, population size is an important factor that needs to be considered when evaluating the significance of per capita national income.