CameraIcon
CameraIcon
SearchIcon
MyQuestionIcon
MyQuestionIcon
6
You visited us 6 times! Enjoying our articles? Unlock Full Access!
Question

For comparing the developmental level of two countries, the total income method is not a good one. Explain.

Open in App
Solution

For comparison between countries, total income is not such a useful measure because countries have different populations, comparing total income will not tell us what an average person is likely to earn.
Hence, we compare the average income which is the total income of the country divided by the total population. The developmental level of two counties are compared by their per capita Income.

flag
Suggest Corrections
thumbs-up
0
Join BYJU'S Learning Program
similar_icon
Related Videos
thumbnail
lock
Analysing Financial Information
ACCOUNTANCY
Watch in App
Join BYJU'S Learning Program
CrossIcon