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Q.

Mention if the given statement is true or false:


While average income is useful for comparison, it also hides disparities.


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a

True

b

False  

answer is A.

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Detailed Solution

The given statement is true.
A country's average income fails to show how equitable income distribution is. Two countries might have the same average incomes, but it cannot be determined if all the citizens are earning the same amount. Thus, even though per capita income can give an idea about the average incomes of individuals in the country, it still suffers from several disadvantages.
 
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