What may a decline in the poverty ratio along with GDP growth indicate?
Answer and explanation
Correct answer: Some benefits of growth reached lower-income groups
The poverty ratio measures the proportion of people below a defined poverty line. If it falls while GDP grows, at least some additional income, employment, prices, or public support may have enabled more low-income people to meet basic needs. This suggests that part of the growth was inclusive, so B is correct. It does not prove that inequality disappeared, but A says the opposite necessarily; C and D contradict the information.
Frequently asked questions
What is the correct answer to this question?
Some benefits of growth reached lower-income groups
Why is this the correct answer?
The poverty ratio measures the proportion of people below a defined poverty line. If it falls while GDP grows, at least some additional income, employment, prices, or public support may have enabled more low-income people to meet basic needs. This suggests that part of the growth was inclusive, so B is correct. It does not prove that inequality disappeared, but A says the opposite necessarily; C and D contradict the information.
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.
