gs1medium

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

  1. A.industrial output fails to keep pace with agricultural output.
  2. B.agricultural output fails to keep pace with industrial output.
  3. C.poverty and unemployment increase.
  4. D.imports grow faster than exports.
▶ Answer & Explanation

Correct answer: C. poverty and unemployment increase.

Economic development is a broader concept than mere economic growth. While an increase in GNP indicates growth, true development requires improvements in the living standards of the population. A rise in poverty and unemployment suggests that the benefits of growth are not being distributed equitably or are not creating sufficient opportunities, thus indicating a lack of development despite GNP increase.

Source: UPSC gs1 2018

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