why is total income not useful measure for comparison between two countries
Answers
Answered by
8
Hey friend here is your answer..
Attachments:
Answered by
6
because total income doesn't include the measure of population difference between the two countries.
if India's total income is ₹30, and UK's total income is ₹25, we cannot conclude India to be richer than UK. because, India may have to share ₹30 with her population of 135 while UK might be having only 65 people to share their income of ₹25.
So each citizen of UK can now have 0.38 paisa (ie.,₹25/65). wheras Each Indian can have only 0.22 paisa (ie., ₹30/130).
Obviously UK may have lot of extra money to spend on other activities while India may have to borrow loan from other countries to meet the yearly expenditure for her huge population.
if India's total income is ₹30, and UK's total income is ₹25, we cannot conclude India to be richer than UK. because, India may have to share ₹30 with her population of 135 while UK might be having only 65 people to share their income of ₹25.
So each citizen of UK can now have 0.38 paisa (ie.,₹25/65). wheras Each Indian can have only 0.22 paisa (ie., ₹30/130).
Obviously UK may have lot of extra money to spend on other activities while India may have to borrow loan from other countries to meet the yearly expenditure for her huge population.
Similar questions
Physics,
8 months ago
Chemistry,
8 months ago
English,
8 months ago
Computer Science,
1 year ago
History,
1 year ago