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Explain five reasons why a high per capita income is not an indicator of better living standards in a country.

Explain five reasons why a high per capita income is not an indicator of better living standards
in a country.

Answers

gideon
i. Unequal /unfair income distribution : of the income is inequitable(unfairly/unevenly)distributed,
the welfare may not have improved even increased per capital income.
ii. Overworking/little/no recreation (leisure)-increased per capital may be due to overworking /with
recreation leading to poor standard of living.
iii. Per capital income is derived from arithmetical calculations which may not show a true picture
of rise /fall of standards of living.
iv. Inflation /highly priced gross may raise the per capital income bit not improving standard of
living.
v. Devaluation of currency may increased per capital income but not improve people welfare.
vi. Increased social cost-increase in per capital for those working in urban areas may cause strain
on family relationships.
vii. Wrong /inaccurate data from people /income may give wrong /false exaggerated information of
the standard of living.
viii. Difficult to measure welfare as people’s wants aspirations /task keeps on changing it time
hence this method not best to measure.
gideon1 answered the question on September 25, 2017 at 10:19

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