If income is unequally distributed in an economy,increases in GDP may not raise well-being in an economy.

Question

Quizplus · Accepted Answer

Unequal distribution of income implies that the benefits of GDP growth may be concentrated among a few wealthy individuals or groups, leaving the majority of the population relatively unaffected or worse off. Therefore, increases in GDP may not necessarily lead to improved overall well-being in an unequal economy.

If Income Is Unequally Distributed in an Economy,increases in GDP