why average income is useful for comparison it may hide disparities. discuss.
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The average income or per capita income is used by the World Bank to compare countries. Different countries will have different populations, so comparing the total incomes of countries will not tell us what an average person is likely to earn. Hence , the PCI is used for comparison.
I agree that PCI hides disparities. But for the above reason , PCI is taken into account for the comparison of countries.
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