If per capita GDP rises but unemployment also rises, what conclusion is appropriate?
Answer and explanation
Correct answer: Growth may be jobless
Per capita GDP is average output or income per person; it does not show how many jobs exist or how income is distributed. If this average rises while unemployment increases, output may be growing through automation, capital-intensive production, or gains concentrated among fewer workers. The appropriate conclusion is that growth may be jobless and may not improve welfare for everyone. Thus B is correct; the other options are extreme or unrelated.
Frequently asked questions
What is the correct answer to this question?
Growth may be jobless
Why is this the correct answer?
Per capita GDP is average output or income per person; it does not show how many jobs exist or how income is distributed. If this average rises while unemployment increases, output may be growing through automation, capital-intensive production, or gains concentrated among fewer workers. The appropriate conclusion is that growth may be jobless and may not improve welfare for everyone. Thus B is correct; the other options are extreme or unrelated.
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.
