Question

Can we compare between total income of a country to know its growth?​

Answer 1

Answer:

For comparing the developmental level of different countries, their income is considered to be one of the most important attributes. The countries with higher income are more developed than others with less income. For comparison between countries, we consider the per capita income of each country. In World Development Report, countries are recognised as rich country and low-income country according to their per capita Income. With more income, people Will be able to get more things they need. So, greater income itself is considered to be an important criterion for the development of a country.

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Answer 2

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For comparison between countries, total income is not such a useful measure because countries have different populations, comparing total income will not tell us what an average person is likely to earn.

Hence, we compare the average income which is the total income of the country divided by the total population. The developmental level of two counties are compared by their per capita Income.