Q. 105.0( 1 Vote )

Suppose records show that the average income in a country has been increasing over a period of time. From this can we conclude that all sections of the economy have become better? Illustrate with an example.

Answer :

The average income of a country is a criterion to measure a country’s economic development. If the records show that the average income has been increasing over a period of time, we cannot conclude that all sections of the economy have become better.


This is because averages hide disparities in the income of two sections.


For example, take two sections X and Y whose monthly income is the same. In section X, most of the people have high incomes whereas in section Y, some people may be rich and some may earn very less income. But everybody belongs to Section Y even though there is the difference in income.


Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Let's Calculate - A Guide to an Economist's Dictionary54 mins
Development49 mins
Champ Quiz | Development34 mins
Genius Quiz | Development29 mins
Personality Development Tips42 mins
Resources and Development34 mins
Classification of Resources on the Basis of Development43 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