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      Question

      If India’s GDP grows at 8% but the Gini coefficient

      rises, which of the following is true about poverty? 
      A Poverty always falls Correct Answer Incorrect Answer
      B Poverty may not fall if growth benefits only the rich Correct Answer Incorrect Answer
      C Poverty always rises Correct Answer Incorrect Answer
      D Poverty becomes zero Correct Answer Incorrect Answer
      E Poverty is not related to GDP or Gini Correct Answer Incorrect Answer

      Solution

      Growth with rising inequality (Gini up) means the poor may not benefit. Poverty can persist or even rise if growth is concentrated among the rich.

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