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

Economic development is a qualitative concept that encompasses improvements in the standard of living and social justice, meaning it cannot be achieved if poverty and unemployment increase despite rising GNP. While options (a) and (b) describe structural shifts between sectors, such imbalances do not inherently negate development as long as overall welfare and productivity improve. The core concept tested is the distinction between **economic growth** (a quantitative measure) and **economic development** (a qualitative measure).