|Consider the following statements regarding the growth and the poverty.|
|1. A number of empirical studies have found that the responsiveness of income poverty to growth increases significantly as inequality is lowered.|
|2. The more equal the distribution of income in a country, the greater the impact of growth on the number of people in poverty.|
|3. The greater equity comes at the expanse of lower growth and that there is a trade-off between grow- and equity, when it comes to poverty reduction.|
|Which of the statements given above are correct?|
A) 1 and 2
B) 2 and 3
C) 1 and 3
D) All of these
Correct Answer: D
Solution :[d] It is found that the responsiveness of income poverty to growth increases significantly as inequality is lowered. In addition to this, distribution of income in every section of society boost the growth on the life standard of the population. This is also true that greater equity might be brought at the expanse of lower growth, (but not in substantial manner) which said to reduction of poverty hence, all are the correct statements regarding growth and poverty.
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