Question

Write the most prominent disadvantage of average income in defining development status of a country or a state. (1 mark)

Answer 1

Average income hides the disparities and is influenced by extreme values. That is average does not tell us what a poor person or middle class person is earning it does not give us any idea about the formation of series. So it should not be the only indicator to measure development.

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Answer 2

per capita income decides the income per person but in a country a person may be employed at 2000 while other can have income of12000 but if we calculate per capita income or will be 7000 which is not fair

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