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‘‘Average income is useful for comparison but it may hide disparities.’’ Support the statement with suitable arguments.
(CBSE Delhi 2019)
Answer:
Points to remember
‘‘Average income is useful for comparison but it may hide disparities.’’
This is true because
- Equitable distribution is not ensured.
- Doesn’t reflect income distribution among rich and poor.
- HDI indicators are not considered.
Answer to be written:
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Per capita Income or Averages is not a reliable indicator of economic development because:
- Hides disparities .- If a small population has a very high income, the total income as well as the average income rises, thus hiding disparities about the actual situation.
- Doesn’t tell how income is distributed among people. There may be a very large number of poor people in society but only a handful of very rich persons. Per capita income will not reflect these differences.
- Doesn’t tell about the education, medical facilities, quality of the environment , and other services that influence the quality of life.
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