Passage

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 6 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.

Question

CSATEasyPrelims 2017Comprehension

Which of the following is the most crucial inference from the above passage?

Explanation

Option A is incorrect. While the passage mentions the decline of natural capital (like forests, land, and water), it does not specifically argue that more emphasis should be laid on developing it. The focus is more on the negative impact of GDP-driven growth on both human and natural capital.

Option B is correct. The passage highlights how GDP growth has led to the harm of inclusive wealth (human capital and natural capital). This suggests that GDP-driven growth is unsustainable and has negative consequences, making this the most crucial inference.

Option C is incorrect. While the passage mentions a gap between GDP growth and inclusive wealth, it does not claim that the overall economic performance of the world is unsatisfactory. It focuses more on the unsustainability of growth that is purely GDP-driven.

Option D is incorrect. While human capital grew by 8%, the passage does not explicitly argue that more human capital is needed. The emphasis is more on the decline in natural capital and the harmful effects of GDP-driven growth on inclusive wealth.