Q. 73.5( 2 Votes )

Give two example where an average income is used for comparing situations.

Answer :

Average income is used to compared different countries. It is also called per capita income, it is calculated by dividing total income of the country by population of the country, as per world bank, countries, where per capita income is more than 12056 USD per annum, are called rich countries, and countries with less than 955 USD per annum income are called low-income countries, India is alow-income country, where countries like UAE and other middle east countries are rich countries.


Per capita income is also used to compare different states within India, for example per capita income of 2015–16 of Haryana state was 162034 Rs, whereas for Bihar it was 31454. Per capita income is not always right parameters, as there may become people are very rich and some are very poor, but as it is average out, due to the income of rich people it shows more per capita income of poor people which is not a correct representation.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Genius Quiz | Development29 mins
Let's understand Indian Economy33 mins
Development49 mins
Let's Calculate - A Guide to an Economist's Dictionary54 mins
Champ Quiz | Development34 mins
Personality Development Tips42 mins
Classification of Resources on the Basis of Development43 mins
Resources and Development34 mins
Classification of Soils41 mins
Try our Mini CourseMaster Important Topics in 7 DaysLearn from IITians, NITians, Doctors & Academic Experts
Dedicated counsellor for each student
24X7 Doubt Resolution
Daily Report Card
Detailed Performance Evaluation
view all courses