Question

Which of the following statements highlights the link between economic growth and poverty reduction?

• A. Higher economic growth ensures inclusive growth.
• B. Higher economic growth creates opportunities, and provides the resources to fight poverty.
• C. Higher economic growth provides employement opportunities to all.
• D. Higher economic growth brings in more investment.

Answer 1

The correct option is B Higher economic growth creates opportunities, and provides the resources to fight poverty.

Higher economic growth helps in generating more employment opportunities for people. Moreover, it helps in wealth creation, which can be used for the purpose of poverty alleviation. However, economic growth does not always ensure an inclusive growth.