UPSC Previous Year Question | Prelims GS | 2018

Increase in absolute and per capita real GNP do not connote a higher level of economic development, if:

  1. industrial output fails to keep pace with agricultural output.
  2. agricultural output fails to keep pace with industrial output.
  3. poverty and unemployment increase.
  4. imports grow faster than exports.

Answer

Correct Answer

poverty and unemployment increase.

Explanation

Economic development involves better quality of life, not merely higher income. If poverty and unemployment are rising, higher real GNP does not indicate higher development.

Topics: economy, gnp growth versus economic development, growth and development, national income and development indicators