Why per capita income is an important criterion for development
Per capita income is an important criterion for development because it gives us the perception about the standard of living of the people. Development of a country cannot be measured by the size of its national income but also on the number of people who share it. An increase in per capita income states that more goods and services are available to the people on an average basis and there is an increasing trend on standard of living of the country. Per capita income states the average income of the individual within a specified time frame.