Economics · National Income and Per Capita Income
Despite being the oldest and most common measure of economic growth, what is the primary limitation of using Per Capita Income (PCI) as a comprehensive metric for economic development?
Verified Solution4 OptionsUpdated: October 2026👁️1 View
Share:
- 1It fails to account for wealth distribution, non-monetised activities, and the overall quality of life.✓
- 2It exclusively focuses on the qualitative dimensions of structural and institutional changes.
- 3It is computed as a geometric mean of health, education, and income indices.
- 4It assigns equal weight to life expectancy at age one, infant mortality rate, and basic literacy rate.
Correct answer
It fails to account for wealth distribution, non-monetised activities, and the overall quality of life.
Download Single Question PDF
Save this question and verified answer as a clean study sheet with live clickable link.
👥
Share with Friends & Study Groups
Challenge your peer aspirants on WhatsApp or Telegram to solve this question!
Online Test Series
Preparing for Economics?
Practice full-length Economics mock tests with real exam timers, instant score analysis, and all-India ranking.
Chapter Practice
Practice National Income and Per Capita Income MCQs →Want more practice questions on National Income and Per Capita Income?
Solve complete topic-wise tests with detailed solutions on GkGet.
Related Practice Questions
Recommended practice questions in Economics · National Income and Per Capita Income