Mr Ram has annual income of’ 1000000 while Mr Raj has annual income of’ 7000000. The average income of Mr Ram and Mr Raj is Rs 4000000 per annum. Do you think average income reflects the correct picture of the life of Mr Ram and Mr Raj?
The average income looks good but in actually there is a huge disparity between the income of Mr Ram and Mr Raj. Mr Ram can hardly meet his regular expenses while Mr Raj has huge amount of income which may be more than sufficient for him. The equitable distribution of income and wealth is missing in this case.