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Structural Changes (Changes in GDP Distribution) Video Lecture | Indian Economy for State PSC Exams - BPSC (Bihar)
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FAQs on Structural Changes (Changes in GDP Distribution) Video Lecture - Indian Economy for State PSC Exams - BPSC (Bihar)
| 1. What are structural changes in GDP distribution? |  |
Ans. Structural changes in GDP distribution refer to shifts in the composition and distribution of economic activities within a country's GDP. These changes can occur when there are significant shifts in the relative importance of different sectors or industries in the economy over time.
| 2. How do structural changes impact the economy? | |
Ans. Structural changes can have various impacts on the economy. For example, if there is a shift from a predominantly agrarian economy to a more industrialized one, it can lead to increased productivity, higher incomes, and improvements in overall living standards. However, these changes can also result in job displacements and inequality if not managed properly.
| 3. What factors can drive structural changes in GDP distribution? | |
Ans. Several factors can drive structural changes in GDP distribution. Technological advancements, changes in consumer preferences, government policies, globalization, and demographic shifts are among the key factors that can influence the relative importance of different sectors or industries in an economy.
| 4. Are structural changes in GDP distribution reversible? | |
Ans. Structural changes in GDP distribution can be reversible to some extent, depending on the specific circumstances and government interventions. For instance, if there is a decline in a particular industry's contribution to GDP, targeted policies such as investment incentives or retraining programs can help revive that sector or facilitate the transition to new industries.
| 5. What are the potential challenges associated with structural changes in GDP distribution? | |
Ans. Structural changes in GDP distribution can pose challenges such as unemployment or underemployment in declining sectors, income disparities, and social unrest. Additionally, managing the transition and ensuring the availability of necessary skills and infrastructure can be complex tasks for policymakers. Balancing the need for economic growth with social and environmental considerations is also a challenge during structural changes.
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