Question

For comparing countries ,total income or national income is not a useful measure .Give reason

Answer 1

National income is the total income of the residents of the country.total income is not a useful measure in comparing the levels of development of diff countries as:-

1.countries have diff population so comparing them will not tell us what an an average person is likely to earn.

2.it heights disparity between

a.people living in the same country but engaged in diff occupations

b.states with regard to public facilities like education and health

Hence average income is used to compare the countries which is the total income of the country divided by total population..it is also known as per caplta income

However while average income is useful for comparison it does not tell us how this income is distributed among people.