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.
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.
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