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

1. A. industrial output fails to keep pace with agricultural output.
2. B. agricultural output fails to keep pace with industrial output.
3. C. poverty and unemployment increase.
4. D. imports grow faster than exports.

Answer: C

Explanation

An essential aspect of development is to enable the maximum number to experience the fruits of development. Concepts of per capita income (per capita GDP or per capita NSDP) are not able to capture this aspect of development. There may be a case wherein increase in absolute and per capita GNP is reflective of growth in income of a small section of society and that majority of the population is poverty stricken and unemployed. Multi-dimensional non-monetary social indicators are better reflectors of overall economic development in the society.