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When is GDP growth more likely to reduce poverty?

Answer and explanation

Correct answer: When growth creates employment and income opportunities

GDP growth is more likely to reduce poverty when it is broad-based and creates productive employment, higher earnings, and income opportunities for poorer households. Employment allows people to earn directly, while public revenue can support useful services and social protection. Therefore option B is correct. Falling employment, concentrated gains, and declining public services weaken the connection between aggregate growth and poverty reduction, so options A, C, and D are unsuitable.

Related tags

Poverty ReductionEmploymentIncome OpportunitiesInclusive GrowthGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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