Question

Average icome is important but it has limitations explain it's?

Answer 1

It has limitations as it only tells about monetry development but in person's other factors like education, health etc also plays important role.

Answer 2

Here is your answer
See down


                 Average income is important but it has limitations
Average income means the total income of a country keeping in view of the total population.

More income means more of all things that human beings need. What ever people like and should have, they will be able to get with greater income.

So,If the average income is adequate to meet, the basic requirement and other facilities that country is considered developed.

Average have many limitation:
1.They don't give us the true picture regrading the distribution of income
2.Average don't give us any information  regarding the non-materialistic goods and services
3.National income rises but its distribution makes the rich richer and the poor poorer.
4.Contribution of commodity to economic welfare may be higher than its money value e.g., money value of salt, needle, thread, etc. included in national income is lower than their contribution to economic welfare.


Hope it helped you
If you like my answer please mark as brainliest answer