Economics
GDP and Welfare
Practice questions
In which situation can per capita GDP rise?Which additional question is most useful for assessing welfare when GDP rises?Why may an increase in GDP not necessarily increase welfare?Which activity increases welfare but is not included in GDP?What may be the effect of increased output of a polluting industry on GDP and welfare?If national output rises but leisure time falls sharply what may happen to welfare?Why is per capita GDP considered a better indicator of welfare?What happens to per capita GDP if GDP grows more slowly than population?Two countries have equal GDP but the first country has a smaller population. Which country will generally have higher per capita GDP?How does government provision of clean drinking water affect welfare?A family earlier cooked food at home but now buys the same food from a restaurant. What may happen to GDP?If road accidents increase expenditure on vehicle repairs and medical services what may GDP show?In which situation is welfare most likely to rise along with GDP?What problem arises because GDP mainly values goods and services with market prices?Two countries have the same per capita GDP but one has better education and health services. Which country is likely to have higher welfare?An industry raises production but contaminates a nearby water source. What should be done while assessing net welfare?Which of the following is not an indicator of economic welfare?If real GDP rises and income distribution becomes more equal what can generally be expected?If GDP rises only because prices increase which measure gives a better assessment of welfare?GDP increased in a country but unemployment also rose. What does this imply?