Increase in absolute and per capita real GNP do not connote a higher level of economic development, if
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Answer: C. Economic development means better living standards for people, not just higher output. If poverty and unemployment rise even while GNP grows, the growth is not development. So option C.
Watch for: Options about sectors and trade sound economic, but development is about people's welfare.
Why the other options are wrong
- A. Wrong because the balance between industry and agriculture does not by itself measure development.
- B. Wrong because agriculture lagging industry is normal in development.
- D. Wrong because a trade deficit does not by itself mean there is no development.
Source to check: NCERT Class 10 Economics 'Understanding Economic Development', Chapter 1 'Development'
Answer from the official UPSC key. Written and fact-checked by AI against the official key. Spotted a mistake? Report it.