Q. Which of the following statements/ situation indicates a better welfare due to rising per capita income?
Answer: The per capita income increases with change in the income distribution in favor of the Poor
Notes: The correct answer is "The per capita income increases with change in the income distribution in favor of the Poor." This situation indicates better welfare because rising per capita income, coupled with improved income distribution for the poor, suggests that economic growth is benefiting those who are typically disadvantaged. According to the World Bank, inclusive growth that reduces poverty and inequality is essential for sustainable development. Historical data shows that countries like South Korea and Singapore experienced important economic growth alongside improvements in income distribution, leading to enhanced overall welfare.