Which of the following may result from income inequality?
Answer and explanation
Correct answer: Benefits of GDP growth remaining with a limited group
The governing concept is that GDP growth and welfare are not identical when income is unequally distributed. If additional income and opportunities go mainly to a small group, the benefits of growth may not reach the majority, and poverty or deprivation may persist. Therefore option C is correct. Equal incomes and equal welfare describe equality, while poverty does not automatically disappear merely because inequality exists or GDP grows.
Frequently asked questions
What is the correct answer to this question?
Benefits of GDP growth remaining with a limited group
Why is this the correct answer?
The governing concept is that GDP growth and welfare are not identical when income is unequally distributed. If additional income and opportunities go mainly to a small group, the benefits of growth may not reach the majority, and poverty or deprivation may persist. Therefore option C is correct. Equal incomes and equal welfare describe equality, while poverty does not automatically disappear merely because inequality exists or GDP grows.
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.
