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Which of the following may result from income inequality?

Answer and explanation

Correct answer: Benefits of GDP growth remaining with a limited group

The governing concept is that GDP growth and welfare are not identical when income is unequally distributed. If additional income and opportunities go mainly to a small group, the benefits of growth may not reach the majority, and poverty or deprivation may persist. Therefore option C is correct. Equal incomes and equal welfare describe equality, while poverty does not automatically disappear merely because inequality exists or GDP grows.

Related tags

Income InequalityGdp GrowthWelfare DistributionPovertyGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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