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Which example shows that GDP growth provides no information about income distribution?

Answer and explanation

Correct answer: All additional income goes to the richest one percent

GDP is an aggregate measure of the value of final goods and services produced; it does not reveal how that income is shared among households. If all additional income from growth goes to the richest one percent, GDP rises but inequality may worsen. Option A is therefore correct. The other choices concern output, prices, or trade and do not directly demonstrate unequal distribution.

Related tags

Income InequalityGdp GrowthIncome DistributionMacro IndicatorsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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