why average income is not a good criteria to measure development
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Answer:
If national income of a country goes up but the per capita income is not increasing, that will not raise the living standard of the people. That way, per capita income is a better measure of economic development than the national income. ... In underdeveloped countries, there is very less capacity to produce per head.
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Explanation:
• Average is influenced by extreme values
• Average does not give the total formation of series
• Average hides discrepancy
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