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What may be a benefit of GDP growth when income is equally distributed?

Answer and explanation

Correct answer: The living standard of more people may improve

GDP growth increases the total economic output, but its welfare effect depends partly on how the resulting income is distributed. If income is distributed relatively equally, more households can gain purchasing power and access to goods and services, so living standards may improve for more people. Therefore option A is correct. Growth does not necessarily reduce production, eliminate currency or end pollution.

Related tags

Equal Income DistributionLiving StandardsGdp GrowthGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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