UPSC CSE Prelims
Question 75
Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
View correct answer and explanation
Correct answer: C
Correct Option: C
Explanation: Economic development requires improvements in welfare, employment and distribution, not merely growth of real national income. Rising poverty and unemployment can coexist with a higher GNP.
Option-wise Analysis:
A: Incorrect - Sectoral industry–farm growth imbalance alone does not negate all developmental improvement.
B: Incorrect - The reverse sectoral imbalance likewise does not decisively establish worsening welfare.
C: Correct - Correct-rising poverty and joblessness undermine any claim of broad economic development.
D: Incorrect - Higher imports than exports affect the trade balance, not automatically the population’s developmental gains.