All questions of Growth, Development and Happiness for BPSC (Bihar) Exam

Understanding the Statements
The two statements address the evolution of the concepts of progress, growth, and development, particularly in the economic context.
Statement-I Analysis
- Progress, growth, and development were initially viewed as synonymous terms.
- Distinct definitions began to emerge in the late 20th century, particularly during the 1960s to 1980s.
- This period marked a significant shift in understanding how these concepts relate to socio-economic contexts.
Statement-II Analysis
- Economic growth refers to the measurable increase in national output or economic indicators, such as GDP.
- Economic development, however, encompasses broader aspects, focusing on improving the quality of life and living standards.
- It involves transitioning from low-income to high-income economies and includes factors such as education, health, and income distribution.
Connection Between the Statements
- Both statements highlight the evolution of economic terminology and concepts over time.
- Statement-II provides a clear distinction between economic growth and development, thus elucidating the implications of the terms mentioned in Statement-I.
Conclusion
- Since both statements are accurate and Statement-II clarifies the evolution referenced in Statement-I, the correct answer is option 'A': Both Statement-I and Statement-II are correct, and Statement-II explains Statement-I.
This understanding is crucial for grasping the nuances in economic discussions, especially in the context of policy-making and development strategies.

Analysis of Statement-I
- Statement-I discusses the resistance within economics and sociology to incorporate psychological, cultural, and normative aspects in development.
- This resistance is often attributed to a fear of diluting the core focus of these disciplines, potentially leading to an overlap with other fields such as psychology and anthropology.
- This perspective highlights a traditional view that may overlook the importance of human behavior and societal norms in developmental processes.
Analysis of Statement-II
- Statement-II mentions the World Development Report (WDR) of 2015, which indeed emphasizes the behavioral and social foundations of development.
- This report has been well-received, indicating a shift in recognizing the significance of psychological and cultural factors in development policies.
- The positive reception of the WDR suggests an opening in the discourse, countering the earlier resistance noted in Statement-I.
Conclusion
- Both statements are correct.
- Statement-I reflects a historical resistance in the disciplines, while Statement-II illustrates a contemporary shift towards integrating these aspects into development discussions.
- However, Statement-II does not directly explain Statement-I; rather, it shows the evolution of thought within the field.
Thus, the correct answer is option 'B': Both Statement-I and Statement-II are correct, but Statement-II does not explain Statement-I.

Enhancing Nudges in Public Policy
Nudging refers to subtle policy shifts that encourage individuals to make decisions that are in their broad self-interest. One key strategy identified to enhance the effectiveness of nudges is the use of reminders and repeated reinforcements.
Importance of Reminders and Reinforcements
- Behavioral Consistency: People often struggle to maintain consistent behaviors over time. Reminders serve as cues, prompting individuals to reconsider their choices and actions.
- Habit Formation: Repeated reinforcement helps in establishing new habits. When nudges are coupled with regular reminders, they become more ingrained in daily routines.
- Cognitive Load Reduction: In a world filled with overwhelming choices, reminders simplify decision-making. They reduce the cognitive load on individuals, making it easier to follow through on intended actions.
Real-World Applications
- Health Initiatives: Programs aiming to improve health, such as smoking cessation or weight loss, often utilize reminders to encourage participants to stay on track with their goals.
- Financial Decisions: Sending reminders for savings or investment deadlines can significantly increase participation rates and improve financial behaviors.
Social Norms and Accountability
- Social Pressure: Reminders can invoke social norms, as individuals are more likely to comply when they know others are also being encouraged to do the same.
- Accountability: Regular check-ins or reminders can create a sense of accountability, prompting individuals to adhere to commitments they might otherwise overlook.
In conclusion, implementing policies that involve reminders and repeated reinforcements is a powerful strategy to enhance the effectiveness of nudges in public policy, leading to better decision-making and improved outcomes.

Analysis of the Pairs
To determine how many pairs are correctly matched, we need to evaluate each statement.
1. Economic Growth
- Definition: Refers to the increase in economic variables such as GDP over a period of time.
- Correctness: This pair is correctly matched, as economic growth does indeed signify an increase in economic metrics.
2. Economic Development
- Definition: Encompasses improvements in living standards, including transitions from low-income to high-income status.
- Correctness: This pair is also correctly matched, as economic development involves broader improvements in quality of life, not solely income levels.
3. Progress
- Definition: Often associated with advancements, but it is not strictly limited to quantifiable metrics.
- Correctness: This pair is incorrectly matched; progress can refer to qualitative improvements and societal advancements beyond mere quantification.
4. World Happiness Report
- Definition: A publication that measures well-being and happiness levels across countries, but it is produced by the Sustainable Development Solutions Network (SDSN) and not specifically by the World Bank.
- Correctness: This pair is incorrectly matched, as the World Happiness Report is not a resource provided by the World Bank.
Conclusion
- After careful evaluation, only two pairs are correctly matched: Economic Growth and Economic Development. Thus, the correct answer is option 'B', indicating that only two pairs are accurate.

Human and Moral Qualities Impacting Economic Development
The relationship between morality, altruism, and economic development is complex and multifaceted. Research in psychology and evolutionary biology suggests that human and moral qualities play a critical role in shaping economic outcomes.
Understanding the Role of Morality in Economics
- Morality and altruism are not just social constructs; they are deeply rooted in human evolution.
- These qualities foster trust and cooperation, which are essential for economic interactions.
- Societies with strong moral frameworks tend to have better economic performance due to enhanced social capital.
Altruism and Economic Growth
- Altruistic behaviors encourage individuals to act in the interest of others, promoting community well-being.
- Strong community ties can lead to better resource sharing and collaboration, boosting economic activities.
- Economies thrive in environments where individuals feel a sense of responsibility toward one another.
Social Norms and Their Evolution
- Norms of cooperation and fairness can evolve, influencing economic behavior.
- As societies develop, these norms help in building institutions that are crucial for sustainable economic growth.
- Trust and shared values reduce transaction costs and enhance market efficiency.
Conclusion
In conclusion, human and moral qualities are integral to understanding economic development. They influence how individuals and communities interact, ultimately shaping economic structures and outcomes. A society that fosters moral values and altruism is likely to see more robust economic development, reinforcing the idea that economic success is not solely a product of policies but also of the values inherent in its people.