Question

How do we compare different countries? Limitations of average income?

Please answer me clearly. ​

Answer 1

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(i) Averages are used for better understanding.

(ii) For comparison between countries, total income is not very useful.

(iii) Different countries have different populations, so total income will not tell us what an average person is likely to earn.

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Answer 2

(i) Averages are used for better understanding.

(ii) For comparison between countries, total income is not very useful.

(iii) Different countries have different populations, so total income will not tell us what an average person is likely to earn.