Question

Why is average income not an important criterion for measuring economic development? Explain in three points

Answer 1

Average income of two countries, average speed of two vehicles over a distance, average height of the students in two different classes of a school. It is an essential criterion because it informs us what an average person is likely to gain and in addition publishes some idea about the rising standard of living. Prosperity of a country depends not merely on its national income but also on the number of people who would divide it. In case the number of people is considerable, the average income will be barely. This is the case in India. Average income, i.e., per capita income is important but not the sole criterion for development. Along with average income, equitable distribution of income in a country should equally be considered. All sections of the economy have become better cannot be concluded because diverse sections of She economy may have become more appropriate or more critical. An example is the current situation in India, where the average income has increased every year; the services sector has increased vastly considerable, but agriculture is having virtually no growth. 5. Per capita income level of middle income countries as per WAR 006 was between ` 37,000 and ` 4,53,000 per annun. To become a developed sovereign state, India should achieve the following—  

• A highly developed economy have advanced infrastructure facilities like better roads, better telecommunication network, better transportation facilities, etc.Higher per capita income, matching that of other developed countries.  

• A more ethical general standard of living with enough food to provide for the most underprivileged people adequately. The service sector should provide more wealth,income than the industrial or agricultural

Answer 2

The average income ignores the other important factors of development such as education.

Explanation:

• The prosperity of a nation depends on the national incomes and the number of people that share it.

• The larger the average income the more is the size of earning capacity and the GDP of the nation. Average income is not considered an equitable distribution of income.  

• Such as in India the average income has increased in service sectors but the agricultural sector has not been much growth. It ignores other factors like literacy rate, morality rate, and life expectancy.

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• brainly.in/question/18080470 answered by sivanisranjith.