Question

If a larger portion of the total income is concentrated in the hand of few people average income fails to reflect real distribution of income

Answer 1

Answer:

If a large portion of total income is concentrated in hands of few people, average income fails to reflect the real distribution of income due to income inequality.

Income inequality is known as a notable imbalance in the equal distribution of income.

Such a scenario leads to a high-income concentration typically in the hands of a minute

percentage of an active population. If income inequality exists, there is a broad difference between the economic resources of one specific group of the population

and that of another. The separations from income inequalities and analysis that are used to explain income disparity may also vary. It does not reflect the real distribution clearly.

Hope it was helpful to you

Don’t forget to mark me as the brainliest