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Class 10 Exam  >  Class 10 Questions  >  Per capita income hidesa)disparitiesb)average... Start Learning for Free
Per capita income hides
  • a)
    disparities
  • b)
    average income 
  • c)
    total population
  • d)
    none of these 
Correct answer is option 'A'. Can you explain this answer?
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Verified Answer
Per capita income hidesa)disparitiesb)average incomec)total population...
Average income hides the disparities among people.
consider an example if 1 country is having people who earn the same income. let the average income of that country be 5000 rupees.
if another country has 5 people but 4 of them have very less income and the 5th one is very rich... the average would be the same i.e 5000 rupees.
so, both the cases become same when we do comparison on the basis of income.
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Most Upvoted Answer
Per capita income hidesa)disparitiesb)average incomec)total population...
Per capita income, also known as income per person, is the mean income of the people in an economic unit such as a country or city.
  • Per capita income is often used as average income, a measure of the wealth of the population of a nation, particularly in comparison to other nations.
  • Per capita income hides the disparities among people.
  • It does not tell us about the actual distribution of income among the people, that is it hides disparities.
  • It does not take into account other human development indicators eg. medical, educational welfare and concentrates only on material welfare.
You can learn about Per Capita Income and all key concepts of Class 10 chapter "Development" by going through the doc:
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Per capita income hidesa)disparitiesb)average incomec)total population...
Per Capita Income and its Significance

Per capita income refers to the average income earned per person in a particular region or country. While it is an important indicator of the economic well-being of a nation, it can also be misleading in many ways. Let us understand how:

Disparities Hidden in Per Capita Income

Per capita income is calculated by dividing the total income earned in a region or country by its population. However, it fails to take into account the income distribution among the population. For instance, if the income of a few wealthy individuals is significantly higher than the average income of the population, the per capita income may appear higher than it actually is. On the other hand, if the income distribution is more equitable, the per capita income may appear lower than it actually is.

Thus, per capita income hides the disparities in income distribution and the extent of poverty and inequality in a region or country. Therefore, it is important to look beyond per capita income and consider other indicators such as the Gini coefficient, which measures income inequality.

Conclusion

In conclusion, while per capita income is an important indicator of the economic well-being of a nation, it should not be considered in isolation. It is essential to consider other indicators to get a more comprehensive understanding of the economic conditions of a region or country.
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Read the source given below and answer the questions that follows:For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. The income of the country is the income of all the residents of the country. This give us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population.The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich countries and those with per capita income of US$ 955 or less are called low-income countries. India comes in the category of low middle income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.Q. What is the main criterion used by the World Bank in classifying different countries?

Read the source given below and answer the questions that follows:For comparing countries, their income is considered to be one of the most important attributes. Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, greater income itself is considered to be one important goal. The income of the country is the income of all the residents of the country. This give us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population.The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with per capita income of US$ 12,056 per annum and above in 2017, are called rich countries and those with per capita income of US$ 955 or less are called low-income countries. India comes in the category of low middle income countries because its per capita income in 2017 was just US$ 1820 per annum. The rich countries, excluding countries of Middle East and certain other small countries, are generally called developed countries.Human Development Report published by UNDP compares countries based on the educational levels of the people, their health status and per capita income.Q. The compares the development of the countries on the basis of literacy rate, gross enrolment ratio and health status of their people.

Read the source given below and answer the questions by choosing the most appropriate option:Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, the greater income itself is considered to be one important goal. Now, what is the income of a country? Intuitively, the income of the country is the income of all the residents of the country. This gives us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population. The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with a per capita income of US$ 49,300 per annum and above in 2019, are called high income or rich countries and those with a per capita income of US$ 2500 or less are called lowincome countries. India comes in the category of low middle-income countries because its per capita income in 2019 was just US$ 6700 per annum. The rich countries, excluding countries of the Middle East and certain other small countries, are generally called developed countries.Which of the following ranges of per capita incomes come under rich countries?

Read the source given below and answer the questions by choosing the most appropriate option:Countries with higher income are more developed than others with less income. This is based on the understanding that more income means more of all things that human beings need. Whatever people like, and should have, they will be able to get with greater income. So, the greater income itself is considered to be one important goal. Now, what is the income of a country? Intuitively, the income of the country is the income of all the residents of the country. This gives us the total income of the country. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. However, for comparison between countries, total income is not such a useful measure. Since, countries have different populations, comparing total income will not tell us what an average person is likely to earn. Are people in one country better off than others in a different country? Hence, we compare the average income which is the total income of the country divided by its total population. The average income is also called per capita income.In World Development Reports, brought out by the World Bank, this criterion is used in classifying countries. Countries with a per capita income of US$ 49,300 per annum and above in 2019, are called high income or rich countries and those with a per capita income of US$ 2500 or less are called lowincome countries. India comes in the category of low middle-income countries because its per capita income in 2019 was just US$ 6700 per annum. The rich countries, excluding countries of the Middle East and certain other small countries, are generally called developed countries.Which of the following is an awful measure to compare income between countries?

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