Concept:Economic development is the sustained improvement in the living standards and welfare of the people.
Explanation:A key indicator of economic development is the steady increase in per capita income over a long period.
Per capita income is the average income earned by each person in the country in a given year.
It is calculated as total national income divided by the total population.
A sustained rise in per capita income shows that people are earning more, producing more, and enjoying a better standard of living.
Increased military expenditure does not necessarily improve general welfare.
Higher capacity utilization may raise total output, but it does not guarantee improvements in individual income or welfare.
Even distribution of goods and services is important for fairness, but it is not the standard measure of economic development.
Therefore, economic development is best indicated by a continuous growth in per capita income.
Answer:C. A sustained increase in per capita income.