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What is possible if income growth remains limited to a few families?

Answer and explanation

Correct answer: Total GDP may rise without broad welfare improvement

Economic growth measures an increase in production or income, but it does not by itself show who receives the gains. If income growth is concentrated in a few families, total GDP can increase while many people see little improvement in employment, consumption or living conditions. Therefore, option D is correct; the other choices wrongly assume automatic equality or elimination of poverty.

Related tags

Income ConcentrationGdpBroad WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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