Distinguish between total income and average income. Which one is better indicators of economic development and why?
Dear Student,
Total Income is the income on which tax liability is determined. Total income is also know as the sum of money recieved by an individual or an organization. It measures the size of the economy.
Average income or Per capita income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It measures the prosperity of the country
Average income is the better indicator of economic development, because it divides total income by total population and it adds up-to the countries conomy.
Regards
Total Income is the income on which tax liability is determined. Total income is also know as the sum of money recieved by an individual or an organization. It measures the size of the economy.
Average income or Per capita income measures the average income earned per person in a given area (city, region, country, etc.) in a specified year. It measures the prosperity of the country
Average income is the better indicator of economic development, because it divides total income by total population and it adds up-to the countries conomy.
Regards