Question

Distinguish between total income and average income.which one is better indicator of economic development and why?

Answer 1

Answer:

Total income is the total of the income of the whole country.

Average income is the total income of a country divided by its population.

Average income is better indicator of economic development of a country as all of the countries differ in area,population,etc and if the population is lesser it is clear that their income will also be low as they are lesser in amount.E.g India is richer than British but British is smaller than India in order with area and as well as population.

Explanation:

Answer 2

AVERAGE INCOME :

√The total income of a person/The no. of person

√The Average income is also known as Per capita income

TOTAL INCOME :

√Total income is the total of the income of the whole country

√The Total income is known by The total income of a country