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Question : 13
Total: 24
"Higher Gross Domestic Product (GDP) means greater per capital availability of goods in the economy." Do you agree with the given statement? Give valid reason in support of your answer.
Solution:
I do not agree with the statement that "Higher cross domestic product (GDP) means greater per capita availability of goods in economy" as higher GDP does not mean high per head availability of goods and services.
(i) It depends upon the population of the country. If GDP is higher but population is equally high then per head availability of goods and services will be low.
(ii) It also depends on the fact that whether the income is equally distributed or unequally distributed. If income is equally distributed then share of goods and services for each individual will be equal but if it is unequally distributed, the rich will take the more share in comparison to a poor.
(i) It depends upon the population of the country. If GDP is higher but population is equally high then per head availability of goods and services will be low.
(ii) It also depends on the fact that whether the income is equally distributed or unequally distributed. If income is equally distributed then share of goods and services for each individual will be equal but if it is unequally distributed, the rich will take the more share in comparison to a poor.
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