Write the limitation of average income
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The limitation of average income are:
1.it does not tell what an individual is earning
2.it hide income disapparties
3.it also neglect other factors like health and education
1.it does not tell what an individual is earning
2.it hide income disapparties
3.it also neglect other factors like health and education
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Hello mate
Here's your answer
AVERAGE INCOME : This means average income generated by each person in a given group of people . That's , per capita or average income is the total income of the country divided by its total population .
Formula to find average income :
TOTAL INCOME /TOTAL POPULATION
Limitations of average income
1) It doesn't tell us how the income is distributed among the people . Because some may be very rich but the masses maybe poor .
2) It hides disparities
3) Average income cannot be regarded as the sole indicator of development .
4) Average income has its limitations because it tells us about the averages but not about actual figures .
Hope my answer will help you
Here's your answer
AVERAGE INCOME : This means average income generated by each person in a given group of people . That's , per capita or average income is the total income of the country divided by its total population .
Formula to find average income :
TOTAL INCOME /TOTAL POPULATION
Limitations of average income
1) It doesn't tell us how the income is distributed among the people . Because some may be very rich but the masses maybe poor .
2) It hides disparities
3) Average income cannot be regarded as the sole indicator of development .
4) Average income has its limitations because it tells us about the averages but not about actual figures .
Hope my answer will help you
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