Give two example where an average income is used for comparing situations.

Average income is used to compared different countries. It is also called per capita income, it is calculated by dividing total income of the country by population of the country, as per world bank, countries, where per capita income is more than 12056 USD per annum, are called rich countries, and countries with less than 955 USD per annum income are called low-income countries, India is alow-income country, where countries like UAE and other middle east countries are rich countries.

Per capita income is also used to compare different states within India, for example per capita income of 2015–16 of Haryana state was 162034 Rs, whereas for Bihar it was 31454. Per capita income is not always right parameters, as there may become people are very rich and some are very poor, but as it is average out, due to the income of rich people it shows more per capita income of poor people which is not a correct representation.