Question

Explain the income method of measuring national income.

Answer 1

we use averages to measure or compare countries as total income does not act as an important measure this each countries have different population if we compare the total income of a country we won't be able to get or know what an average person is in a particular Di is likely to earth yes they are limitations to their use as why averages are useful the even hai disparities as it does not tell how income is distributed in the country and even it becomes difficult to know that what an average person in a country owns and many more for example let us take two countries with 5 citizens each and find the average income for each country let us assume now that which country has same average income per the income distribution in each country is an equal that is one country has equal distribution while the other have an equator distribution for our to poor while one is extremely rich hence we see that average income of a country did not help us to find that there was no proper distribution of a country therefore the income method of measuring the national income is average