WHAT IS AVERAGE INCOME? WHAT IS ITS IMPORTANCE?
HOW IS IT CALCULATED? MENTION ITS LIMITATIONS RELATED
TO DEVELOPMENT.
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Since it is an average measure, it can conceal significant inequality in the distribution of income in a country. Average income may be high because there are a few very rich people and a large number of poor people. In that case, high average income will not indicate high level of development.
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Answer:
Average income is the total income of a country by total number of population.
It is important for the comparison between the country of common subject because every country produce
income.
Average income- total income of a country/total number of population
Limitation of average income is-
It's hides distribution of income among the citizens and it doesn't tell the ground reality.
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