AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
Option B — Per capita income does not reflect how income is distributed among citizens or account for quality-of-life factors like health and education.
Source: Chapter 1 — Income and Other Criteria; Human Development Report
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The textbook explicitly states that per capita income is an inadequate measure because (1) it is an average that hides inequality in distribution (a few rich can raise the average while the poor remain poor), and (2) it ignores non-income factors such as health, education, and security. Option B captures both limitations. Options A, C, and D are not supported by the textbook.