Importance of Non-Measurable Factors in Decision Making

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Which of the following properties of income is the text emphasizing as important in comparing two or more societies, besides the size of per capita income?

The distribution of income among the population. (correct)

The proportion of income spent on consumption versus savings.

The sources of income (e.g., wages, profits, rent).

The rate of income growth over time.

According to the given information, which of the following is NOT a reason why country A is preferred over country B, despite having identical average incomes?

In country B, most citizens are poor and one person is extremely rich.

Country B has a higher overall average income than country A. (correct)

Country A has no citizens that are very rich or extremely poor.

Country A has a more equitable distribution of income among its citizens.

Which of the following is NOT given as an example where an average is used for comparing situations?

Comparing the average monthly incomes of two countries.

Comparing the average number of hours worked per week in two different jobs. (correct)

Comparing the average test scores of two classrooms.

Comparing the average lifespan of two populations.

Why does the text suggest that average income is an important criterion for development?

Because it determines the standard of living and purchasing power of the population. Signup and view all the answers

Suppose the records show that the average income in a country has been increasing over a period of time. Which of the following conclusions can be drawn from this information?

The country's overall economic productivity and development have improved. Signup and view all the answers

Based on the information provided, which of the following is the LEAST likely factor that would influence a person's choice of where to live between the two countries?

The availability of job opportunities and job security. Signup and view all the answers

What might be a factor influencing a person to choose a job with less pay but regular employment?

Sense of security Signup and view all the answers

In the context of development goals, what could be a reason for women to engage in paid work?

Enhanced dignity in society Signup and view all the answers

Why is job security important when considering employment options?

To feel secure and free Signup and view all the answers

Which factor might lead to an individual accepting a job with high pay but no job security?

Temptation of higher income Signup and view all the answers

In the context of development, what contributes to more women taking up various jobs or starting businesses?

Safe and secure environment Signup and view all the answers

Why do people have different notions of development according to the text?

Because development goals are not just about better income. Signup and view all the answers

What is the primary reason why total income is not a useful measure for comparing countries?

Total income varies based on the country's population Signup and view all the answers

Which term is synonymous with 'average income' as mentioned in the text?

Per capita income Signup and view all the answers

Why are the rich countries generally called developed countries excluding some nations?

Strong socio-economic infrastructure Signup and view all the answers

What is one aspect that 'averages' might hide, making them less informative in certain contexts?

Income disparities Signup and view all the answers

How does per capita income differ from total income when comparing countries?

Per capita income considers the population size, while total income does not Signup and view all the answers

Importance of Non-Measurable Factors in Decision Making

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