Increase in absolute and per capita real GNP do not connote a higher l

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if

Join Our Telegram Channel

industrial output fails to keep pace with agricultural output.

agricultural output fails to keep pace with industrial output.

poverty and unemployment increase.

imports grow faster than exports.

Answer is Right!

Answer is Wrong!

This question was previously asked in

UPSC IAS – 2018

Download PDF Attempt Online

The correct answer is C.

Economic development is a broader concept than economic growth (measured by metrics like GNP/GDP). While growth in real per capita GNP indicates an increase in the average income/output per person, it does not guarantee improved living standards or overall welfare for all. If poverty and unemployment increase alongside GNP growth, it suggests that the benefits of growth are concentrated among certain segments of the population, inequality is rising, and structural issues prevent job creation. This scenario indicates that economic growth is not leading to inclusive or equitable development.

Economic development typically involves not just quantitative growth but also qualitative improvements in areas such as health, education, income distribution, poverty reduction, and environmental sustainability. High GNP growth coupled with increasing poverty and unemployment points to a failure in translating economic expansion into broad-based improvements in human well-being.

More similar MCQ questions for Exam preparation:-