What is necessary to make the benefits of GDP growth widespread?
Answer and explanation
Correct answer: Employment opportunities and fair income distribution
GDP growth becomes broadly beneficial when people can participate in production and receive a fair share of the resulting income. Employment opportunities spread purchasing power, while fair distribution prevents gains from being concentrated among a small group. Hence option C is correct. Raising prices, increasing population or increasing imports alone does not ensure that growth improves the welfare of most people.
Frequently asked questions
What is the correct answer to this question?
Employment opportunities and fair income distribution
Why is this the correct answer?
GDP growth becomes broadly beneficial when people can participate in production and receive a fair share of the resulting income. Employment opportunities spread purchasing power, while fair distribution prevents gains from being concentrated among a small group. Hence option C is correct. Raising prices, increasing population or increasing imports alone does not ensure that growth improves the welfare of most people.
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.
