Economics
GDP and Welfare
Practice questions
Excessive exploitation of natural resources may raise current GDP. What may be its effect on future welfare?Defence equipment production is included in GDP but why should welfare conclusions be drawn carefully?A country's GDP rose by 10% and its population rose by 4%. What is the approximate change in per capita output?Which change can raise welfare without changing GDP?If two countries have equal real per capita income but the first has a much higher crime rate, which is likely to have greater welfare?Why can average per capita income be misleading when income distribution is highly unequal?Which type of production may raise GDP but reduce social welfare?If reconstruction spending after a natural disaster raises GDP, does it indicate an equal rise in welfare?In which situation can per capita welfare fall despite an increase in real GDP?What is the main difference between GDP and green GDP?Why does improved public transport raise welfare when it reduces both travel time and pollution?If the quantity of goods rises but their quality falls sharply, what problem arises in relating GDP to welfare?Which indicator should be considered with GDP for a broader assessment of welfare?A country reduced the working week while keeping output unchanged. What is the likely effect on welfare?If part of income shifts from poor households to rich households while total GDP remains unchanged, what may happen to social welfare?A country's nominal GDP rose by 12% while prices rose by 8%. Approximately how much did real output rise?How can underground economy activities affect the assessment of GDP and welfare?People in a village use clean air and water without payment. Why is their value generally not added to GDP?If the government increases spending on education what is the likely long-term effect on welfare?What does rising life expectancy and falling infant mortality along with GDP growth indicate?