Question

Disadvantages of average income?​

Answer 1

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(i) One major disadvantage is that.. in the process of looking at the income, basic factors like Infant Mortality Rate, Death Rate, Literacy Rate, Better health Facilities etc. are taken less into consideration.

(ii) A rise in per capita income is due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development.

(iii) National income rises but its distribution makes the rich richer and the poor poorer.Jun 28, 2016

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Answer 2

i) One major disadvantage is that.. in the process of looking at the income, basic factors like Infant Mortality Rate, Death Rate, Literacy Rate, Better health Facilities etc. are taken less into consideration.

(ii) A rise in per capita income is due to rise in prices and not due to increase in physical output, it is not a reliable index of economic development.

(iii) National income rises but its distribution makes the rich richer and the poor poorer.Jun 28, 2016