Economics
GDP and Welfare
Practice questions
Government spending on pollution control may be added to GDP. Why is it not treated as a complete welfare gain?Internet service quality improves greatly while its price remains nearly unchanged. Why may GDP understate the welfare gain?If mining raises output but displaces local people what should be included in welfare assessment?What is the most appropriate interpretation if literacy rises along with GDP?A country's total GDP rises by 20%, but its population rises by 25%. What can be said about per capita GDP?If an industry's output rises but workplace safety worsens, why may GDP overstate welfare?In which situation can environmental welfare rise without a fall in GDP?If families receive safer housing while house-market prices do not change, what may happen to welfare?What would be useful to deduct from GDP while measuring net economic welfare?If the availability of goods rises but access to safe drinking water falls, what can be concluded about welfare?If per capita income rises but the school dropout rate also rises, what conclusion is appropriate?Greater use of household machines increases families' leisure. What may be its effect on welfare?If GDP rises but a large share of income goes as profits to foreign-owned companies, which measure may be useful for residents' welfare?If output rises but crime in public places increases, what may happen to quality of life?How does increased government spending on child vaccination contribute to welfare?If a country's real GDP remains constant but pollution falls greatly what may happen to welfare?Why may welfare rise when income is redistributed toward the poor while total output remains unchanged?Free digital services save people's time and money. Why may GDP understate this benefit?If GDP rises but people's protection against natural disasters declines how should long-term welfare be assessed?What does expansion of sanitation facilities along with GDP growth indicate?