Why can poverty remain even when average income is high?
Answer and explanation
Correct answer: Because income may be distributed unequally
The governing concept is that average income measures income per person but does not reveal how income is distributed. If a small group receives most of the income while many people receive very little, the average can still be high and poverty can persist. Therefore, option B is correct. Option A is wrong because averages are useful; C is too absolute; and D is unrelated to income distribution.
Frequently asked questions
What is the correct answer to this question?
Because income may be distributed unequally
Why is this the correct answer?
The governing concept is that average income measures income per person but does not reveal how income is distributed. If a small group receives most of the income while many people receive very little, the average can still be high and poverty can persist. Therefore, option B is correct. Option A is wrong because averages are useful; C is too absolute; and D is unrelated to income distribution.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
