Answer :

In development, the average value is often used to compare different countries with respect to their income. Since different countries have different populations, total income does not work as a good comparative measure. Average value of income is derived by dividing the total income of the country by the total population and is also called per capita income. Although average income is used for comparison purposes, it is not an absolute measure as it can hide disparities as it does not state whether the income distribution is equitable or not.

Rate this question :

How useful is this solution?
We strive to provide quality solutions. Please rate us to serve you better.
Related Videos
Development49 mins
Let's Calculate - A Guide to an Economist's Dictionary54 mins
Champ Quiz | Development34 mins
Genius Quiz | Development29 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