Why total income is not a useful measure to compare two countries ?
Answers
It is only used for comparing which is not enough.For example a student differ in health, talents , achievement's, studies. A healthiest student may not be the studious one.
Why is total income not a useful measure for comparison between two countries? Explain the reason.
Ans : Total income is not a useful measure for comparison between the two countries because it hides the disparities. It does not show how the income is distributed among the different sections of the society. It only shows the total income of the country.
This can be explained with the help of a example: Consider two countries A and B both having total income of ₹2,00,000 . But country A is having more population than B . Therefore the income will be distributed among more number of people and hence each person will get a smaller share of income . So, even if the total income is same, people of two different countries will not have similar income . Total income also does not show how the income is distributed.....
It's a bit long ans. but , surely will help you.......!!!!