Question

Why do we use averages to compare the development of countries? What are the limitations in using them

Answer 1

1) Usually, 'average income' is used to compare development of different countries. 2) Total income cannot be directly compared as population of each country differs. Hence 'average' is used to compute how much income each person earns. ... 5) This is as a result of high inequality of incomes lasting in the society.

Answer 2

The use of average is to compare income because it makes comparison between countries of different sizes easily. It removes that toughness or any kind of difficulty which is faced during calculation of per capita income. It hides the differences in the distribution of income which is its limitation.