Question

while average income is useful for comparison , but it may hide disparties.discuss

Answer 1

This is true.For example,suppose two countries A and B both have average income ₹5000. In country A 99%population earn a income of 4000-6000;this shows that in this country resources and money are equally distributed,whereas in country B 90%people earn a income less ₹500 and remaining 10%earn more than ₹50000;this shows that resources and money in this country is distributed unequally.Hence we can say that average income is useful in comparing countries but it may hide disparities