Bachelor of General Studies (BGS) Degree Practice Exam

What is often accompanied by rapid economic development?

1. Decreased job opportunities

2. Rising incomes and higher rates of consumption

3. Stagnation of technological advancements

4. Lower levels of waste generation

The correct answer is: Rising incomes and higher rates of consumption

Rapid economic development is typically characterized by rising incomes and higher rates of consumption because as economies grow, they often create more jobs, which increases household incomes. With additional income, consumers have more purchasing power, leading to increased demand for goods and services. This rise in demand further stimulates the economy, encouraging businesses to produce more and invest in new products and services. Additionally, rising incomes can lead to enhanced living standards, which often results in consumers spending more, thus propelling the growth of various sectors within the economy. In contrast, the other options do not align with the trends typically observed during periods of economic growth. For example, decreased job opportunities would not usually accompany rapid economic development, as development often leads to job creation. Similarly, stagnation of technological advancements contradicts the innovative drive that often accompanies economic growth, which frequently includes significant investments in technology. Lastly, lower levels of waste generation are generally not a direct outcome of economic development, as initial increases in consumption and production can lead to more waste, although sustainability practices may evolve over time.