Limitation of Per Capita Income as an Indicator of Development:
Per capita income is a commonly used indicator to measure the level of development in a country. However, it has several limitations that need to be considered when using it as the sole measure of development.

1. Ignores Income Inequality:
- Per capita income does not take into account income distribution within a country.
- A high per capita income may mask significant income inequality, where a small percentage of the population holds a majority of the wealth while the majority of people are living in poverty.
- This can result in a misleading picture of the overall well-being of a country's population.

2. Does not Consider Non-Market Transactions:
- Per capita income only measures market transactions and does not include non-market activities such as household work, volunteer work, or subsistence farming.
- This can underestimate the economic contribution of these activities, especially in developing countries where a significant portion of the population is engaged in such activities.

3. Excludes Informal Economy:
- Per capita income may not accurately reflect the economic activities in the informal sector, which is prevalent in many developing countries.
- This can lead to an underestimation of the true level of economic activity and well-being in the country.

4. Ignores Social and Environmental Factors:
- Per capita income does not account for social factors such as access to education, healthcare, and social services, which are important indicators of development.
- It also does not consider environmental factors such as pollution, natural resource depletion, and climate change, which can have long-term effects on a country's development.
In conclusion, while per capita income is a useful indicator of economic growth, it should be used in conjunction with other measures to provide a more comprehensive understanding of a country's level of development.