Social Science (087) — AI-generated practice question

(i) Average income of Country X = (9,500 + 10,500 + 9,800 + 10,000 + 10,200) ÷ 5 = Rs 10,000

Average income of Country Y = (500 + 500 + 500 + 500 + 48,000) ÷ 5 = Rs 10,000

Both countries have the same average monthly income of Rs 10,000.

(ii) In Country X, incomes are evenly distributed — all citizens earn close to Rs 10,000. In Country Y, four citizens earn only Rs 500 while one earns Rs 48,000, meaning most people are very poor. So people would prefer Country X for a better standard of living.

(iii) This comparison reveals that average income hides income inequality. When income is unevenly distributed, the average (per capita income) gets distorted by a few very rich or very poor individuals. As the textbook states, income by itself is not a completely adequate indicator — it does not tell us how income is distributed among citizens, making it a limited measure of development.

---

• (i) is straightforward arithmetic — show the calculation clearly.
• (ii) focus on distribution, not just the average figure.
• (iii) the key term examiners look for is income inequality / unequal distribution; also mention that average conceals the real picture — this directly matches the textbook's point on limitations of per capita income as a development measure.