Question

Why national income is not useful measure to compare the development of a country?

Answer 1

National income is the sum of total money earned by total population of the country. But different countries have different population and size.

For example- A country with large population will definitely have total income higher than that of a small country with less population.

Answer 2

National income of a country is called its total income. Total income is not a useful measure of development due to some reasons. These are as follows.It does not show how the income is distributed among the different sections of society. It hides the disparities among the people of a country.Total income is not sufficient for other factors like health status, literacy rate, life expectancy, educational development etc.Different countries have different population, so it is extremely difficult to tell about every person's income because it tells us about the income of the whole country. It does not tell that how the income is divided between the citizens of a country.