WHY IS PER CAPITAL INCOME considerd as an important criterion for development -SST 10th

WHY IS PER CAPITAL INCOME considerd as an important criterion for development -SST 10th
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Average income represents the total income of a country keeping in view of the total population.If the average income is adequate to meet, the basic requirement and other facilities that country is considered developed.More income means more of all things that human beings need.
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Last Answer : (i) Average income gives us an idea what an average person is likely to get out of the total national income. (ii) Average income is used to classify the countries into rich, poor or developing nations. (iii) Average income is used to make economic policies.

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An increase in per capital income is not an indication of an increase in the economic welfare of the people - (1) When such increase is the result of an increased production action of comforts (2) When such increase is the result of an increase in agricultural production (3) When it is the result of an increase in the production of industrial goods (4) When such increase is the result of increased production of intoxicants

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Last Answer : When such increase is the result of increased production of intoxicants

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