228k views
5 votes
The main reason that gross national income figures can be misleading is because they

User Vork
by
7.2k points

1 Answer

4 votes

Answer:

It doesn't consider differences in the cost of living.

Step-by-step explanation:

The Gross national income is a cumulative measure of the total income of the residents of a country in certain period usually a year.

It is misleading since it does not indicate the individual cost of living of residents. Remember, the individuals in the economy could be paying high taxes that eat up a greater part of their income, though it might seem as if the GNI value is good if you based your analysis of the economy on it.

User Jason Towne
by
6.9k points