Question

Why NNP is not considered as a useful measure to compare a country’s development with other countries?

Answer 1

1. For comparison between countries' development, total income or the national income is not a useful measure.
2. Since countries have different populations, comparing total income will not tell us what an average person is likely to earn.
3. Hence we compare average income which is also called per capita income.
4. Now the economical have realized that investment in human capital.