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Average income rose in a country but the number of homeless people also increased. What does this imply?

Answer and explanation

Correct answer: Distribution and housing problems may remain serious despite average growth

The governing concept is the limitation of averages as welfare indicators. Average income can rise because gains go mainly to higher-income groups, while poor households may face high rents, unemployment, or inadequate housing. Thus option C is correct: distribution and housing conditions may worsen even when the average improves. The other choices make unjustified claims about everyone, measurement, or income accuracy.

Related tags

Average IncomeHomelessnessInequalityWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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