economicsWhy is the total income of countries not used to make comparisons between them?

Why is the total income of countries not used to make comparisons between them?


  1. A
    The population of different countries is different  
  2. B
    It's not feasible to measure
  3. C
    Not every country is developed
  4. D
    All of the above 

    Fill Out the Form for Expert Academic Guidance!l



    +91



    Live ClassesBooksTest SeriesSelf Learning



    Verify OTP Code (required)

    I agree to the terms and conditions and privacy policy.

    Solution:

    The total income of countries is not used to make comparisons between them because different countries' populations are different. Total revenue is not particularly useful for comparing countries because their populations vary. Comparing total income won't tell us what the average person will make.
    As a result, we contrast the average income, which is calculated by dividing the national income by the population. The per capita income of the two countries is used to compare their developmental status. The people of each nation differ; therefore, using the overall income of the countries to compare their economies does not provide a clear picture of what the average citizen earns because their occupations also vary. It would not be proper to categorise nations based on their overall wealth because every country has a unique population. The average income of a nation's citizens is known as its per capita income. It is determined by dividing a nation's total income by its population.
     
    Chat on WhatsApp Call Infinity Learn