Social Science (087) — AI-generated practice question

Average income (per capita income) hides inequality in distribution. A country may have a high average income, but if most of the wealth is concentrated among a few, the majority may still be poor. For example, four families with incomes Rs 4000, Rs 7000, Rs 3000 and Rs 6000 have an average of Rs 5000, yet none actually earns that amount. Hence, indicators like health status, literacy rate, and life expectancy must also be considered alongside average income.

Source: Chapter 1 — Income and Other Criteria; Human Development Report

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• The key limitation examiners want: average income conceals the distribution of income among people.
• Support with the textbook's own numerical example (four families) — this shows you understand the concept, not just memorised it.
• Mention 1–2 alternative indicators (health, literacy) to complete the answer, since the question implies "what should we use instead/additionally."
• Do not write a long essay — 2 marks = ~50 words, which is roughly what the model answer above gives.