Question

While average income is useful for comparisons, but it may hide disparities' Explain. Give two points​

Answer 1

Answer:

The per capita income does not tell us anything about the distribution of income. For instance, a rich nation with an unequal distribution of income would be much lower than a weak nation with a more equitable distribution of income. ... The size of population influence the per capita income.

Answer 2

Per capita income is an essential measure for development and is considered to be one of the most essential features for analyzing nations but it endures from the following conditions:

1. The per capita income does not tell us anything about the distribution of income. For instance,  a rich nation with an unequal distribution of income would be much lower than a weak nation with a more equitable distribution of income.

2. The per capita income does not evolve numerous amenities & assistance that affect the quality of life, for example, education facilities, health facilities, etc.