When income distribution is more equal, what is generally possible at the same GDP?
Answer and explanation
Correct answer: More people may benefit from the output
At a given GDP, a more equal distribution means that the benefits of total production are shared more broadly rather than being concentrated among a small group. Consequently, more people may obtain income and access to goods and services, so option D is correct. Equality does not require production to stop, eliminate the population or benefit only the rich; the word “may” also avoids claiming that every outcome is guaranteed.
Frequently asked questions
What is the correct answer to this question?
More people may benefit from the output
Why is this the correct answer?
At a given GDP, a more equal distribution means that the benefits of total production are shared more broadly rather than being concentrated among a small group. Consequently, more people may obtain income and access to goods and services, so option D is correct. Equality does not require production to stop, eliminate the population or benefit only the rich; the word “may” also avoids claiming that every outcome is guaranteed.
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.
