Single Answer MCQ
Q-00045280
Why is total income not a useful measure for comparing the economic status of countries?
1
It ignores population differences
2
It depends on tax rates
3
It is hard to calculate
4
It includes only rich citizens' income
Answer and Solution
Answer
A. It ignores population differences
Solution:
Total income isn't useful for comparison because it does not account for population size. Different countries can have the same total income but vastly different living standards due to differing populations.
Watch Video Solution