why average income is taken into consideration instead of total income while making comparison between countries
Answers
Answered by
82
Average income represents the total income of a country keeping in view of the total population.If the average income is adequate to meet, the basic requirement and other facilities that country is considered developed.More income means more of all things that human beings need. What ever people like and should have, they will be able to get with greater income.
average income =total income /total population
average income is also known as per capita income....
HOPE IT HELPS U..
average income =total income /total population
average income is also known as per capita income....
HOPE IT HELPS U..
niketsingla1gmailcom:
thanks
Answered by
81
Average income is taken in considreation instead of total income while comparing countries because it gives a more accurate position of the countries. It is possible that two countries have equal total income but different population. So in this case the country having lower population is in reality more developed as it can provide better facilities and development to its citizens and has higher avg. income. On the other hand country with large population will not be able to take proper care of health, education, training, etc because of shortage of money and has lower avg. income.
But in this case if we consider total income than both countries have a equal stand which is absolutely untrue. So considering total income in such cases will lead us into illusion. That is why average income is a better option.
But in this case if we consider total income than both countries have a equal stand which is absolutely untrue. So considering total income in such cases will lead us into illusion. That is why average income is a better option.
Similar questions