Question

If the distribution of the gains from growth matters, growth in median income is: Multiple Choice the same as growth in per capita income. a less informative measure of growth than growth in per capita income. a more informative measure of growth than growth in per capita income when the distribution of income is equitable. a more informative measure of growth than growth in per capita income when the gains from growth are concentrated on a small segment of the population.

Answer 1

a more informative measure of growth than growth in per capita income when the gains from growth are concentrated on a small segment of the population.

Explanation:

Average earnings will look greater than even smaller parts of the community earn big, however, the average will give the appropriate impression on the ground because it is not biased with excessive ends.

Therefore in the case when there is benefit allocation arise from the growth in the median so it would lead to a concentration on the small population segment