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If both real GDP and per capita GDP rise but the poverty rate does not fall, what does it indicate?

Answer and explanation

Correct answer: Growth benefits did not sufficiently reach poorer groups

Real GDP measures inflation-adjusted output, while per capita GDP expresses that output as an average per person. Neither measure proves that poorer households received a meaningful share of the gains. If both indicators rise but the poverty rate remains unchanged, growth may be concentrated among higher-income groups or may not create sufficient income opportunities for the poor. Hence option B is correct; C and D contradict the evidence.

Related tags

PovertyInclusive GrowthPer Capita GdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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