What is possible if income growth remains limited to a few families?
Answer and explanation
Correct answer: Total GDP may rise without broad welfare improvement
Economic growth measures an increase in production or income, but it does not by itself show who receives the gains. If income growth is concentrated in a few families, total GDP can increase while many people see little improvement in employment, consumption or living conditions. Therefore, option D is correct; the other choices wrongly assume automatic equality or elimination of poverty.
Frequently asked questions
What is the correct answer to this question?
Total GDP may rise without broad welfare improvement
Why is this the correct answer?
Economic growth measures an increase in production or income, but it does not by itself show who receives the gains. If income growth is concentrated in a few families, total GDP can increase while many people see little improvement in employment, consumption or living conditions. Therefore, option D is correct; the other choices wrongly assume automatic equality or elimination of poverty.
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.
