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Q-00004025
Why do you think average income is an important criterion for development? Explain.
Answer and Solution
Answer
Average income (PCI) provides a quantifiable measure of economic capacity, reflecting access to basic needs like food, healthcare, and education. For instance, high-income countries (PCI ≥ $49,300) can afford better infrastructure and other requirements. However, it ignores inequality whereby only a fraction of the population has very high income and remaining might be poor.
Solution:
Average income (PCI) provides a quantifiable measure of economic capacity, reflecting access to basic needs like food, healthcare, and education. For instance, high-income countries (PCI ≥ $49,300) can afford better infrastructure and other requirements. However, it ignores inequality whereby only a fraction of the population has very high income and remaining might be poor.
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