Single Answer MCQ
Q-00045282
What is one limitation of using average income as a development measure?
1
It is difficult to estimate
2
It does not consider population
3
It ignores income inequality
4
It does not reflect employment rates
Answer and Solution
Answer
C. It ignores income inequality
Solution:
A major limitation of using average income as a measure is that it ignores income inequality, which can lead to a situation where a small number of wealthy individuals distort the average, masking the reality of many who are living in poverty.
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