Question

why does national income and average income in not considered as useful measure in comparing countries?​

Answer 1

Answer:

National income and average income in not considered as useful measure in comparing countries because of the following reasons :

(i) comparing  countries on the basis of average income . it is narrow concept to comparing countries . it hide the distribution of income in the country .for example - the 90% share of average income of the country have only 10% population and the next 10% share by 90% of the population of the countries.

(ii) average income do not tell about the   average life expentancy of the people of the country.

(iii) average income does not tell about the literacy rate of the country , and many other issues like , health status , net attendance ratio , gross enrolment ratio etc .

                   

Answer 2

Answer:Total Income or national Income is calculated by adding the Total Income of all people of that country ,by this we get to know how much wealth is there in the whole country , but we do not know how much is the per capita income of that country. This is why the Total Income or national Income is not suitable to compare countries

Explanation: