Question

if a larger portion of the local total
income is concentrated in the hand
of few
people , Average income fails to reflect real
distribution of
income". How?

Answer 1

Answer:

suppose there are two people

one is earning 1 lakhand the other is earning 1 crore. the avg income would be 5050000 which is way far from 1 lakh

Answer 2

Answer:

Explanation: average income means total income per total population which means that the average income is the amount on which every person of the country have right but if a large amount is given in the hands of few people than there will be no equal distribution and hence no real distribution.