Economics
GDP and Welfare
Practice questions
Why may the value of vegetables grown and consumed by a family in its home garden be omitted from GDP?If pollution causes more illness and medicine sales increase, what difference may appear between GDP and welfare?Two economies have equal per-capita GDP but one has greater income inequality. Which may generally have higher broad welfare?A public park provides free recreation and a clean environment. Why is its full benefit not shown in GDP?If GDP rises but food prices increase faster than the incomes of poor households, what may happen?An economy increases timber output by cutting natural forests. What is the correct analysis of present and future welfare?If free community teaching improves students’ learning, why may GDP not fully reflect it?A country’s GDP is ₹9000 crore and its population is 6 crore. What is its per capita GDP?If nominal GDP rises by 15% and the general price level rises by 10%, approximately how much did real output rise?If drinking-water quality deteriorates while output rises, how should welfare be assessed?If GDP remains unchanged but the government provides better education and health services to the poor, what may happen to social welfare?Private vehicle sales raised GDP in a city, but traffic congestion also increased greatly. What conclusion is appropriate?What may a decline in the poverty ratio along with GDP growth indicate?If output rises but the burden of unpaid household work on women also rises, why is welfare assessment difficult?In which situation may the condition of most people not improve even when per capita GDP rises?If the quality of government schools improves without an increase in fees what may happen to welfare?GDP increased in an economy but the share of clean energy fell. What is the main concern for long-term welfare?Why may GDP rise when a family replaces home care of an elderly member with a paid care centre?If war increases weapon production and GDP what may happen to welfare?If real per capita GDP and average life expectancy both rise what may this indicate?