Increase in absolute and per capital real GNP

18. Increase in absolute and per capital real GNP do not connote a higher level of economics development, if
a) Industrial output fails to keep pace with agriculture output.
b) Agriculture output fails to keep pace with industrial output.
c) Poverty and unemployment increase.
d) Imports grow faster than exports.

Ans: c) Poverty and unemployment increase.
Explanation:-

• Development means a qualitative change which is always value positive. This means that development cannot  take  place  unless  there  is  an  increment  or  addition  to  the  existing  conditions.  Development occurs when positive growth takes place. Yet, positive growth does not always lead to development. This happens when poverty and unemployment increases.
• If gains of increase in per capita income are grabbed by a small section of society, then economic growth will not lead to economic development. For example – Libya