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Why average income are useful for comparisons but this hide disparities

Posted by Chitralekha Khaund 2 years, 11 months ago

CBSE > Class 10 > Social Science

1 answers

Adithya Dev A 2 years, 11 months ago

Though average income is effective for comparisons, it indeed hides certain disparities :- 1) It only concentrates on the size of income and does not indicate distribution of income. 2) It does not stress on the standard of living of people living in the country. 3) It does not consider other parameters of life like freedom, security, happiness, peace, respect, Literacy rate, Infant Mortality rate, Life expectancy, etc.

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