why is the total income not such a useful measure for comparing countries?
total income is useful for comparison different countries but it does not tell us, how is the income is distributed among the people.
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Total income is not a useful measure for comparing countries as it is not a good criterion for having a general idea about the average economical status of the state. The income is overall income earned by the population so if the income is fluctuating (i.e. if it is very low for some and very high for some), then there will be a false idea of an acceptable income.
For eg: If two people earn 1INR and 100 INR p.day then their total income is 101 INR and average is 50.5 INR. Surely this is incorrect.
For eg: If two people earn 1INR and 100 INR p.day then their total income is 101 INR and average is 50.5 INR. Surely this is incorrect.
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1
HI
⭐️ Average income is taken into consideration while making comparisons between countries.
▶️As different countries have different populations, comparing total income does not tell us what an average person is likely to earn.
▶️Hence, total income is not a useful measure for comparing the development of different countries.
Hope it proved to be beneficial....
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███░░███░░███,total income is useful for comparison different countries but it does not tell as far is the income is distributed among the people.