Why might total income not be a useful measure for comparing countries?

It ignores population differences.

It is always fixed.

It represents only urban incomes.

It reflects non-monetary benefits.

Reviewed & Verified by Edzy Expert

Sandeep Chaturvedi

CBSE Social Science & Humanities Reviewer

Social science and humanities educator with 14+ years of experience reviewing CBSE SST, economics, commerce, arts, and vocational content.

Answer and Solution

A. It ignores population differences.

Total income does not account for population size differences; thus, it could misrepresent the average income individuals earn.

Watch Video Solution

Keep Practising

Students who asked this also explored

Continue with nearby questions to strengthen the same chapter concept while you still have the context fresh in mind.

If a country has a high average income but a large income gap, how does this affect the perception of its development?

Which of the following countries would likely be classified as a high-income country?

What aspect does the distribution of income among residents of a country indicate about its development?

Assuming the average income in Country X has increased over the last decade, what conclusion can be drawn?