Why is total income no useful measure of development?
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Total income is no useful measure of development since it does not show the distribution of financial resources between individuals in the country and is not an complete indicator of a nation's development by itself.
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Total income measurement of a country for development is not useful,because:
# Here we take average income of all the citizen of the country
Average income= Total income of the country/ Total no of people.
TAKE an examples of 4 people in a country and their salary.
→COUNTRY I →COUNTRY II
Person A=50 Rs Person A=10000
Person B=10 Person B=11000
Person C=50000 Person C=9000
Person D=100 Person D=13000
Average=12540 Average=10750
Average in CASE I > Average in Case II
But check out their individual salary,which is very less for many people,and only one is rich.Would you call this development?
Where would you be happy living in? COUNTRY I or II ?
The total average income does not tell us about the distribution of resources and condition of each individual.Hence cannot be used as an ideal method for determining the Development of the country.
# Here we take average income of all the citizen of the country
Average income= Total income of the country/ Total no of people.
TAKE an examples of 4 people in a country and their salary.
→COUNTRY I →COUNTRY II
Person A=50 Rs Person A=10000
Person B=10 Person B=11000
Person C=50000 Person C=9000
Person D=100 Person D=13000
Average=12540 Average=10750
Average in CASE I > Average in Case II
But check out their individual salary,which is very less for many people,and only one is rich.Would you call this development?
Where would you be happy living in? COUNTRY I or II ?
The total average income does not tell us about the distribution of resources and condition of each individual.Hence cannot be used as an ideal method for determining the Development of the country.
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