Question Details

The following table gives the GDP growth rate and teledensity data of different states of a country in a particular year. Study the table and answer the two items (74-75) that follow.

StatesPer capita income ($)GDP growth rate (%)Teledensity
State 17049.5270.27
State 24195.3135.88
State 325410.8350.07
State 45459.785.94
State 589110.876.12
State 6107711.6977.5
State 79008.88104.86
State 83955.926
State 97207.7682.25
State 108939.5596.7
State 113634.757.7
State 129667.8563.8
State 134959.3752.3
State 148645.4697.9
State 154977.4862.3
State 167777.0393.8
State 173355.849.9
State 185997.4947.84

With reference to the above table, which of the following is/are the most logical and rational inference/ inferences that can be made?

1. Higher per capita income is generally associated with higher teledensity.
2. Higher GDP growth rate always ensures higher per capita income.
3. Higher GDP growth rate does not necessarily ensure higher teledensity.

Select the correct answer using the code given below.

Options

A

1 only

B

2 and 3

C

1 and 3

D

3 only

Show Answer

Correct Answer :

Option C

1 and 3

Solution :

The correct answer is 1 and 3.

Let us analyze each of the given inferences step-by-step using the data provided in the table:

Analysis of Inference 1: "Higher per capita income is generally associated with higher teledensity."
Let us examine the states with the highest per capita incomes and their corresponding teledensity values:
- State 6: Per capita income = $1077, Teledensity = 77.5
- State 12: Per capita income = $966, Teledensity = 63.8
- State 10: Per capita income = $893, Teledensity = 96.7
- State 5: Per capita income = $891, Teledensity = 76.12
- State 7: Per capita income = $900, Teledensity = 104.86
- State 14: Per capita income = $864, Teledensity = 97.9
These states with high per capita incomes (above $850) generally exhibit high teledensity values.
Now let us look at the states with the lowest per capita incomes:
- State 3: Per capita income = $254, Teledensity = 50.07
- State 17: Per capita income = $335, Teledensity = 49.9
- State 11: Per capita income = $363, Teledensity = 57.7
- State 8: Per capita income = $395, Teledensity = 6.0
These states with lower per capita incomes (below $400) generally show much lower teledensity compared to the higher-income group.
Therefore, we can logically infer that higher per capita income is generally associated with higher teledensity. Thus, Inference 1 is correct.

Analysis of Inference 2: "Higher GDP growth rate always ensures higher per capita income."
The term "always" suggests a strict, absolute rule. Let us look for counter-examples in the table to test this claim:
- State 3 has a high GDP growth rate of 10.83%, but its per capita income is only $254.
- State 14 has a much lower GDP growth rate of 5.46%, yet its per capita income is significantly higher at $864.
- Similarly, State 4 has a GDP growth rate of 9.78% with a per capita income of $545, whereas State 2 has a lower GDP growth rate of 5.31% but a per capita income of $419.
Since a higher GDP growth rate does not consistently result in a higher per capita income across all states, the assertion that it "always ensures" it is incorrect. Thus, Inference 2 is invalid.

Analysis of Inference 3: "Higher GDP growth rate does not necessarily ensure higher teledensity."
Let us compare states with high GDP growth rates and check if their teledensity is consistently high:
- State 3 has a very high GDP growth rate of 10.83% and a teledensity of 50.07.
- State 4 has a high GDP growth rate of 9.78%, but its teledensity is extremely low at 5.94.
- State 5 has a high GDP growth rate of 10.8% and a teledensity of 76.12.
The comparison between State 3 (10.83% growth, 50.07 teledensity) and State 4 (9.78% growth, 5.94 teledensity) clearly demonstrates that a high GDP growth rate does not guarantee high teledensity.
Hence, a higher GDP growth rate does not necessarily ensure higher teledensity. Thus, Inference 3 is correct.

Conclusion:
Since Inference 1 and Inference 3 are both logical and rational, the correct code is 1 and 3.

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