National income can't be a true measure of development .why ?
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It is important that national income indicates the differences of income of rich and poor. consider an example
there are 5 person in country
2 earn 100 each and 2 earn 10 each
national income will be =(100+100+10+10)/4
national income=55
here national income is high but there is huge difference between rich and poor.So,national income fails to analyse income difference of rich and poor.Hence it cannot be considered a true measure of develpment.
there are 5 person in country
2 earn 100 each and 2 earn 10 each
national income will be =(100+100+10+10)/4
national income=55
here national income is high but there is huge difference between rich and poor.So,national income fails to analyse income difference of rich and poor.Hence it cannot be considered a true measure of develpment.
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