gs1medium
Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
- A.industrial output fails to keep pace with agricultural output.
- B.agricultural output fails to keep pace with industrial output.
- C.poverty and unemployment increase.
- 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