Why do you think average income is an important criterion for development ? Explain


#1

It is an important criterion because it gives some idea about the rising standard of living. Prosperity of a country depends not only on the size of its national income but also on the number of people who would share it. A rise in average (i.e. per capita income) indicates that more goods and services are available on average to people. Averages helps in obtaining income per individual within a specified time frame.