Question

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Which of the following is/are the drawback(s) of using national income as a tool to measure economic development?

• A. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Considers only quantitative data
• B. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Also known as the total income of the country
• C. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Ignores the quality of life as a factor
• D. <!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Does not show rich-poor disparity

Answer 1

Answer: (A), (C), (D)

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> Does not show rich-poor disparity

<!--td {border: 1px solid #ccc;}br {mso-data-placement:same-cell;}--> National income is considered to be one of the most important attributes for comparing the development of countries. However, for comparing the development of different countries, using total income is not a very useful measure because it clouds the income inequalities that prevail among people. It only considers quantitative measures and ignores the qualitative measures.