Income distribution – top decile share: “The top 10% of Indian households receive 35% of national income.” Identify which conclusions are logically supported about inequality and growth-related concentration.
Verbal Reasoning
Statement and Conclusion
Difficulty: Easy
Choose an option
-
AOnly conclusion I follows
-
BOnly conclusion II follows
-
CEither I or II follows
-
DNeither I nor II follows
-
EBoth I and II follow
Answer
Correct Answer: Only conclusion II follows
Explanation
Given data
- Fact: Top 10% households share 35% of national income.
- Conclusion I: Fast growth causes concentration of wealth.
- Conclusion II: National income is unevenly distributed in India.
Concept/ApproachThe premise directly concerns current distribution, not growth dynamics.
Step-by-step evaluation1) Conclusion I introduces a causal claim about 'when an economy grows fast ...'. The premise does not mention growth rates—thus I does not follow.2) A 35% share to the top 10% is a clear indicator of uneven distribution ⇒ Conclusion II follows.
Final AnswerOnly conclusion II follows.