Question

8. Distinguish between total income & average income which one is better indicater of economic

development & why

Answer 1

⚫️Average income

1 ) It is the average income of the population.
2) It measures the prosperity of the country.

⚫️Total income

1 ) It is the total income of a person.
2) It measures the size of the economy.

⚫️ Average income is the better indicator of economic development, because it divides total income by total population and it adds up-to the countries economy