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Why is real per capita income taken as an index of economic welfare? - Economics

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प्रश्न

Why is real per capita income taken as an index of economic welfare?

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उत्तर

Real per capita income is considered a reliable indicator of economic welfare because it reflects the average availability of goods and services per person, adjusting for inflation. It shows the true standard of living by eliminating the effects of price changes and population growth, offering a more accurate measure of material well-being and economic development.

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अध्याय 19: National Income Aggregates - TEST YOURSELF QUESTIONS [पृष्ठ ३८२]

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फ्रैंक Economics [English] Class 12 ISC
अध्याय 19 National Income Aggregates
TEST YOURSELF QUESTIONS | Q 38. | पृष्ठ ३८२
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