Question

why is total income not a useful measure for comparison between countries?

Answer 1

For comparing the development level of two countries the total income method is not good one because a country with a higher population will have a higher income and a country with a lower population will have a lower income. It does not proves that country with higher income is more developed. So there is a method to calculate the actual income of the country . It is called per capita income or average income. In this method the total income of a country is divided by its total population to find the per capita income. It means what an average person is expected to earn in a country. This method is used by the world bank.