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Which conclusion is correct if income growth remains limited to the richest group?

Answer and explanation

Correct answer: Total GDP may rise without broad welfare improvement

GDP or aggregate income can increase even when the additional income goes mainly to a small wealthy group. This raises the total but does not prove that poorer households gained, poverty fell, or inequality narrowed. Hence option B is correct. Options A, C, and D incorrectly assume equal benefits, elimination of poverty, or equal income without evidence about distribution.

Related tags

Income InequalityBroad WelfareIncome DistributionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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