Question

Why is it said that income by itself is not a completely adequate indicator of material goods and services that citizens are able to use? Give one example?

Answer 1

Income earned by an individual is used for varied needs. The needs such as education, heath service etc are considered basic.
Individuals use a part of income after spending for these basic needs. This income is known as disposable income that they use to buy products.
Thus, the entire income can not become an indicator for the purchasing parity of the public.