Read the following passage and answer the item that follows. Your answers to this item should be based on the passage only. In the last two decades, the world's gross domestic product (GDP) has increased by 50 percent, whereas inclusive wealth has increased by a mere 3 percent. In recent decades, GDP-driven economic performance has only harmed inclusive wealth like human capital; and natural capital like forests, land and water. While the world's human capital which stands at 57 percent of total inclusive wealth grew by only 8 percent, the natural capital which is 23 percent of total inclusive wealth declined by 30 percent worldwide in the last two decades. Which of the following is the most crucial inference from the above passage?

Read the following passage and answer the item that follows. Your answers to this item should be based on the passage only. In the last two decades, the world's gross domestic product (GDP) has increased by 50 percent, whereas inclusive wealth has increased by a mere 3 percent. In recent decades, GDP-driven economic performance has only harmed inclusive wealth like human capital; and natural capital like forests, land and water. While the world's human capital which stands at 57 percent of total inclusive wealth grew by only 8 percent, the natural capital which is 23 percent of total inclusive wealth declined by 30 percent worldwide in the last two decades. Which of the following is the most crucial inference from the above passage? Correct Answer    The growth driven by GDP only is neither desirable nor sustainable.

The correct answer is The growth driven by GDP only is neither desirable nor sustainable.

Key Points

  • The given passage tells that our GDP has increased by 50% but inclusive wealth has merely increased by 3%. Inclusive wealth deals with both human capital and natural capital like forests, land and water.
  • Though our GDP has increased but our natural capital (forest, land and water) which accounts for 23% of total inclusive growth has declined by 30% worldwide in the last two decades which is really a serious concern for our future. It means we are not having sustainable growth. Sustainable growth means a growth without causing any harm to the natural resources and other elements involved and is considered the best development in any sector. Hence, the growth driven by GDP only is neither desirable nor sustainable.
  • Hence, the correct answer is option (2).

Related Questions

Read the following passage and answer the item that follows. Your answers to this item should be based on the passage only. There has been a significant trend worldwide towards regionalism in government, resulting in a widespread transfer of powers downwards towards regions and communities since 1990s. This process, which involves the creation of new political entities and bodies at a sub-national level and an increase in their content and powers, is known as devolution. Devolution has been characterized as being made up of three factors-political legitimacy, decentralization of authority and decentralization of resources. Political legitimacy here means a mass demand from below for the decentralization process, which is able to create a political force for it to take place. In many cases, decentralization is initiated by the upper tier of government without sufficient political mobilization for it at the grassroots level, and in such cases the decentralization process often does not fulfill its objectives. Which among the following is the most logical, rational and critical inference that can be made from the above passage?
Read the following passage and answer the item that follows. Your answers to this item should be based on the passage only. Many farmers use synthetic pesticides to kill infesting insects. The consumption of pesticides in some of the developed countries is touching 3000 grams/hectare. Unfortunately, there are reports that these compounds possess inherent toxicities that endanger the health of the farm operators, consumers and the environment. Synthetic pesticides are generally persistent in environment. Entering in food chain they destroy the microbial diversity and cause ecological imbalance. Their indiscriminate use has resulted in development of resistance among insects to insecticides, upsetting of balance in nature and resources of treated populations. Natural pest control using the botanical pesticides is safer to the user and the environment because they break down into harmless compounds within hours or days in the presence of sunlight. Plants with pesticidal properties have been in nature for millions of years without any ill or adverse effects on the ecosystem. They are easily decomposed by many microbes common in most soils. They help in the maintenance of biological diversity of predators and human health hazards. Botanical pesticides formulated from plants are biodegradable and their use in crop protection is a practical sustainable alternative. On the basis of the above passage, the following assumptions have been made: 1. Synthetic pesticides should never be used in modern agriculture. 2. One of the aims of sustainable agriculture is to ensure minimal ecological imbalance. 3. Botanical pesticides are more effective as compared to synthetic pesticides. Which of the assumptions given above is/are correct?
Read the following passage and answer the item that follows. Your answers to this item should be based on the passage only. Many farmers use synthetic pesticides to kill infesting insects. The consumption of pesticides in some of the developed countries is touching 3000 grams/hectare. Unfortunately, there are reports that these compounds possess inherent toxicities that endanger the health of the farm operators, consumers and the environment. Synthetic pesticides are generally persistent in environment. Entering in food chain they destroy the microbial diversity and cause ecological imbalance. Their indiscriminate use has resulted in development of resistance among insects to insecticides, upsetting of balance in nature and resources of treated populations. Natural pest control using the botanical pesticides is safer to the user and the environment because they break down into harmless compounds within hours or days in the presence of sunlight. Plants with pesticidal properties have been in nature for millions of years without any ill or adverse effects on the ecosystem. They are easily decomposed by many microbes common in most soils. They help in the maintenance of biological diversity of predators and human health hazards. Botanical pesticides formulated from plants are biodegradable and their use in crop protection is a practical sustainable alternative. Which of the following statements is/are correct regarding biopesticides? 1. They are not hazardous to human health. 2. They are persistent in environment. 3. They are essential to maintain the biodiversity of any ecosystem. Select the correct answer using the code given below.