Question

Why National income of the country cannot be the indicator of the level of development of a country ?
A. It is difficult to calculate.
B. It does not indicate the average living standard of the people.
C. It does not take into account the income of the poor people.
D. None of the above​

Answer 1

It does not indicate the average living standard of the people.

Answer 2

• An increase in national income may not raise the quality of living. This is because the increase may take place due to increase in spending on things such as defense, which do not improve the living standards.

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