While average income is useful for comparisons, but it may hide disparities' Explain. Give two points
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While average income is useful for comparisons, but it may hide disparities' Explain. Give two points
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Answer:
The per capita income does not tell us anything about the distribution of income. For instance, a rich nation with an unequal distribution of income would be much lower than a weak nation with a more equitable distribution of income. ... The size of population influence the per capita income.
Per capita income is an essential measure for development and is considered to be one of the most essential features for analyzing nations but it endures from the following conditions:
1. The per capita income does not tell us anything about the distribution of income. For instance, a rich nation with an unequal distribution of income would be much lower than a weak nation with a more equitable distribution of income.
2. The per capita income does not evolve numerous amenities & assistance that affect the quality of life, for example, education facilities, health facilities, etc.