If a country's GDP rises but most of the growth is confined to a few large cities what may happen to rural welfare?
Answer and explanation
Correct answer: Rural welfare may improve very little
GDP measures the value of final goods and services produced, but it does not show how income and opportunities are distributed across regions or groups. If growth is concentrated in a few cities, rural households may receive little additional employment, income, or public investment. Therefore option B is correct: rural welfare may improve only slightly. The other choices make unsupported absolute claims.
Frequently asked questions
What is the correct answer to this question?
Rural welfare may improve very little
Why is this the correct answer?
GDP measures the value of final goods and services produced, but it does not show how income and opportunities are distributed across regions or groups. If growth is concentrated in a few cities, rural households may receive little additional employment, income, or public investment. Therefore option B is correct: rural welfare may improve only slightly. The other choices make unsupported absolute claims.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
