2018 · EconomyPrevious Year Question
Q48.
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

C

Explanation

An essential aspect of development is to enable the maximum number to experience the fruits of development. There may be a case wherein increase in per capita GNP reflects growth in income of a small section of society while the majority remains poverty stricken and unemployed. Multi-dimensional non-monetary social indicators are better reflectors of overall economic development.