Which of the following is a drawback of using average income as a measure of development?

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Average income does not indicate a disparity in income level.

Calculation of average income is a tedious process

Average income is always lower than the actual income of the people.

Average income fails to indicate the economic stability of a country.

answer is A.

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Detailed Solution

The drawback of using average income as a measure of development is that the average income does not indicate a disparity in income level.
Average income refers to the total income of the country divided by the total population of the country. It is one of the indicators used by the World Bank to compare the development of the countries. However, a country cannot be called a developed nation just because of its high average income. It needs to achieve the standards of development in other criteria as well, such as literacy rate, employment rate, life expectancy, etc. It also does not indicate the disparity in income level.

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