Besides size of per capita income, what other property of income is important in comparing two or more societies?
Besides the size of per capita income, the distribution of income is an important property for comparing two or more societies. While average income is useful for comparison, it does not tell us how income is distributed among people.
For example, two countries may have identical average incomes, but one country is preferred because it has more equitable distribution. In such a country, people are neither very rich nor extremely poor. In contrast, a country with unequal distribution may have most citizens poor and only a few extremely rich.
Thus, averages often hide disparities. It is crucial to look at income distribution to understand if the benefits of development reach the majority of the population.
Explanation
The textbook uses the example of Country A and Country B to illustrate this concept. While both countries have the same average income, Country A is considered more developed because it has equitable distribution, whereas Country B has wide disparities. This teaches students that average income (per capita income) masks the differences between rich and poor, making the distribution of income a vital criterion for comparison.