Direction for the following 8 (eight) items: Read the following eight passages and answer the items (1-8) that follow the passages. Your answers to these items should be based on the passages only.

In the last two decades, the world’s Gross Domestic Product (GDP) has increased by 50 per cent, whereas inclusive wealth has increased by a mere 6 per cent. 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 per cent of total inclusive wealth grew by only 8 per cent, the natural capital which is 23 per cent of total inclusive wealth declined by 30 per cent worldwide in the last two decades.

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

Correct Answer: The growth driven only by GDP is neither desirable nor sustainable.

Step-by-Step Explanation:

1. Analyze the passage:
- The passage states that while world GDP grew by 50% over the last two decades, inclusive wealth grew by only 6%.
- GDP-driven economic performance has harmed inclusive wealth, specifically human capital and natural capital (forests, land, and water).
- While human capital grew by a mere 8%, natural capital declined by 30% worldwide.

2. Evaluate the options:
- Option 1: More emphasis should be laid on the development of natural capital. While natural capital has declined, the primary point of the passage is highlighting the negative and unbalanced impact of relying solely on GDP growth.
- Option 2: The growth driven only by GDP is neither desirable nor sustainable. This is the most direct and crucial inference. The passage explicitly highlights how GDP-driven growth harms crucial components of wealth (human and natural capital), proving that such growth is damaging (not desirable) and depletes resources (not sustainable).
- Option 3: The economic performance of the countries of the world is not satisfactory. This is too broad and vague; the focus is specifically on the flaws of GDP-driven growth.
- Option 4: The world needs more human capital under the present circumstances. The passage mentions the low growth of human capital as a symptom/result of GDP-driven growth, not as the overall main logical takeaway.

Conclusion:
The most crucial inference drawn directly from the text is that economic growth relying solely on GDP leads to environmental degradation and poor wealth distribution, making it neither desirable nor sustainable.