Question

why average income is taken into consideration instead of total income ?​

Answer 1

Answer:

the correct answer is consideration

Answer 2

• The total income of the country is the income of all the residents of the country.

• Since countries have different population, comparing total income will not tell us what an average people is likely to earn.

• Hence we compare the average income which is the total income of the country divided by its total population.

• So, Average income = Total income / Total population

• The average income is also called per capita income.