Limitation of avg. Income

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Limitation of avg. Income

Posted by Sakshi Kulshreshtha 7 years, 2 months ago

CBSE > Class 10 > Social Science

3 answers

Avinash Saigal 7 years, 2 months ago

Limitation of average income is that it does not tell how this income is distributed among people.

1Thank You

Yogita Ingle 7 years, 2 months ago

It does not indicate the disparities in the distribution of income. E.g. the wide gap between the incomes of extremely rich and very poor people.
It does not indicate long-term sustainability as non-renewable resources are liable to be exhausted.
The method of calculating per capita income also varies among countries. This, it is not highly reliable for comparisons.

0Thank You

Puja Sahoo 7 years, 2 months ago

the basic limitations are that they are not able to overspend on excessive things that are not meant for them.

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