Question

WHAT IS AN AVERAGE INCOME?WHY DO WE USE AVERAGE INCOME.GIVE ITS MERITS AND LIMITATIONS


CLASS-10
ECONOMICS
CHAPTER:-DEVELOPMENT

Answer 1

$\huge\star{\underline{\mathfrak{Answer}}}$

Average income per capita income is the ratio of total national income of a country with respect to total population.

The limitations of per capita income are as follows

• it is only the average income of the country
• it hides the disparities
• it doesn't tell us how the income is distributed among the people

Answer 2

Average income=(GDP of a country/Total population of the country)

It is calculated to Know the poverty scale and economical range of a country in all over the world.