Chapter 1

NCERT
Class 10
Economics
Solutions
4. Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example.

Question:

Suppose records show that the average income in a country has been increasing over a period of time. From this, can we conclude that all sections of the economy have become better? Illustrate your answer with an example.

Answer:

With the increase in the income of a country, all the sectors of the economy become better. It also cannot be said that the increase in the average income of a country means that all parts of the economy have become better. If we take a look at the condition of our country, then after independence the national income and average income of India is continuously increasing except for some specific years. But the contribution of agriculture in the total income of the country is continuously decreasing. Thus we cannot come to the conclusion that all sectors or parts of the economy have become better off.

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