why is average income an important criterion for development?
Answers
Average income is an essential criterion because it tells us what an ordinary person is expected to earn and also gives a remarkable idea about the growing pattern of living. Average income which is also known as per capita income is significant but not the only basis for expansion. The expansion of a nation depends not only on the extent of its federal income but also on the number of people who would participate in it.
Average income is an important criterion for development because it represents the "total income" of the nation.
If the average income is sufficient for the requirements, the basic requirement and other facilities are considered to be developed in this country. More income means more of all the things that people need. They will be able to get with higher income whatever people like and ought to have.
It is an important criterion because it indicates the income of an average person and it also gives some insight in raising the living standards. Income, but also on the number of people sharing it. The average income will be lower if the number of people is large.