Pearson Edexcel · A-Level · Economics B
Course version: 9EB0 · Version from Sept 2015
Developed, emerging and developing economies: d) Mean and median incomes
Full specification wording
Developed, emerging and developing economies: d) Mean and median incomes
Mean income is the total income of a population divided by the number of people, while median income is the middle value when all incomes are ranked in order.
Checked against the Pearson Edexcel 9EB0 specification (opens in a new tab) on .
- Point 4 of 4
- 2 key terms
Study notes
From the checked teaching notes for this specification point.
The idea
Mean income is the total income of a population divided by the number of people, while median income is the middle value when all incomes are ranked in order. In developing and emerging economies, income inequality is often high. A small number of very wealthy individuals can skew the mean income upwards, making it unrepresentative of typical living standards. Therefore, median income is often a more accurate reflection of economic well-being. For example, if a nation experiences rapid growth that only benefits a wealthy elite, the mean income will rise significantly, but the median income may remain stagnant. Comparing both measures helps economists assess income distribution and inequality across different types of economies.
What earns the marks
- Define mean income as total national income divided by population size.
- Define median income as the income of the middle household when all are ranked.
- Explain why mean income can be skewed by extreme outliers such as a few billionaires.
- Justify using median income as a better indicator of typical living standards in highly unequal societies.
Common mistakes and how to put them right
Confusing mean and median.
Put it right: Remembering mean is the mathematical average and median is the middle value in a sorted list.
Assuming mean income reflects typical living standards.
Put it right: Recognising that extreme wealth skews the mean upwards, making the median more representative.
Believing both measures always move together.
Put it right: Understanding that if growth only benefits the rich, the mean rises while the median may not.
Exam tips
- When evaluating living standards in emerging economies, explicitly state why median income provides a more accurate picture than mean income.
- Use the difference between mean and median income as evidence of income inequality in data response questions.
- Remember to check whether data provided in extracts refers to mean or median, as this affects the conclusions you can draw about poverty and development.
Try the lesson
The start of the Developed, emerging and developing economies: d) Mean and median incomes lesson, made from checked teaching notes for this specification point.
Have a go first
In an economy characterised by a high degree of income inequality, where a small percentage of the population earns a disproportionately large share of total income, how does the mean income typically compare to the median income?
Listen
Mean income is the total income of a population divided by the number of people, while median income is the middle value when all incomes are ranked in order. In developing and emerging economies, income inequality is often high. A small number of very wealthy individuals can skew the mean income upwards, making it unrepresentative of typical living standards. Therefore, median income is often a more accurate reflection of economic well-being. For example, if a nation experiences rapid growth that only benefits a wealthy elite, the mean income will rise significantly, but the median income may remain stagnant. Comparing both measures helps economists assess income distribution and inequality across different types of economies. A strong answer earns marks for these points. Define mean income as total national income divided by population size. Define median income as the income of the middle household when all are ranked. Explain why mean income can be skewed by extreme outliers such as a few billionaires. Justify using median income as a better indicator of typical living standards in highly unequal societies. A common slip: Confusing mean and median: The error is assuming mean is the middle value. Instead, remembering mean is the mathematical average and median is the middle value in a sorted list. Exam tip: When evaluating living standards in emerging economies, explicitly state why median income provides a more accurate picture than mean income.
Key words
Say what each word means before you turn the card.
Income inequality
Try answering aloud or in your head before turning the card.
Living standards
Try answering aloud or in your head before turning the card.
See every definition
- Income inequality
- A situation where income is distributed unevenly, often high in developing and emerging economies where a small number of very wealthy individuals exist.
- Living standards
- The typical economic well-being of a population, which median income often reflects more accurately than mean income.
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