AI-generated practice question — model-generated for extra practice, not a previous-year CBSE board question.
High income does not guarantee development because money alone cannot buy all essential goods and services.
As explained in the textbook, public facilities like schools and hospitals are best provided collectively — this is both cheaper and more effective. Even wealthy residents cannot easily replace these through private spending alone, as infectious diseases and lack of nearby quality education affect the whole community.
Without a government hospital, residents face health risks. Without a public school, children (especially girls) may miss education. Thus, health and education outcomes — key HDI indicators — remain poor despite high income.
Source: Development, Chapter 1 — Public Facilities section
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