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Comparing two countries by total income is misleading because
Acurrencies differ
Bpopulations differ
Cexchange rates change
DGDP cannot be measured
Answer & Solution
Correct answer: B. populations differ
1. Two countries with same total income but different populations are not equally well-off.
2. Hence we use per capita (average) income for comparison.
3. This standardises by population.
_Source: NCERT Class 10 Understanding Economic Development, Ch 1 "Development"_
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