Business Studies, asked by harshil2649, 1 year ago

Why is average income considered as an important criterion for development?

Answers

Answered by champ22
0
Hey mate

Here is ur answer


The following points may help you:

a. Average income is the total income divided by the population. It serves as an important tool of comparing different nations and classifying them as rich countries or low income countries.
b. It gives us an information about what an average person is likely to earn and therefore is an important indicator of development.
c. It gives us a quantitative aspect of development.
d. Greater income certainly accounts for an individual to raise his standard of living and fulfil his basic needs.
e. Accordingly, countries, with Rs 4,53,000 per annum as their per capita income were regarded as developed. These included countries like USA, Norway, Australia, Sweden However, Countries with per capita income of Rs 37,000 or below are categorised as low-income countries. This may include for instance India.

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