Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
A
industrial output fails to keep pace with agricultural output.
B
agricultural output fails to keep pace with industrial output.
C
poverty and unemployment increase.
Correct Answer
D
imports grow faster than exports.
Explanation
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).
Economic Development & GrowthLimitations of GNP as a Development IndicatorAbsolute GNPper capita real GNPeconomic developmentindustrial outputagricultural outputpovertyunemploymentincome inequality