Economics
GDP and Welfare
Practice questions
In which situation can consumer welfare rise without an increase in GDP?What is the likely effect on welfare if the government expands rural health centres?Why is additional income more important for a poor family when much of its income is spent on food and housing?If workplace accidents and medical spending both rise, how may GDP give a misleading picture of welfare?If output growth raises average income but also widens the rural-urban income gap, what is the concern?What may happen to welfare if the number of public parks and playgrounds increases?If output rises but real income does not increase because of inflation, what may happen to welfare?If a dam raises electricity production but submerges several villages, how should welfare be evaluated?If GDP rises but children's time for play and study falls, why may welfare decline?If real GDP remains constant but average working time falls while output stays unchanged, what may happen?If per capita income rises but access to mental-health services falls, what conclusion is appropriate?If free online learning materials improve education, why may GDP understate the benefit?If carbon emissions rise sharply along with GDP, what is the main concern for long-term welfare?What does it indicate if GDP rises and poor families gain better access to safe housing?If total GDP rises but per capita GDP falls, what is the most likely reason?If factory machines produce more output but employment falls sharply, what may happen to social welfare?Public health improves in a country but private medical spending falls. What may happen to GDP and welfare?Which indicators should be used with GDP for a better assessment of welfare?If a country's GDP rises but the number of public libraries and community centres falls, what may happen to social welfare?If real GDP rises but income inequality increases sharply what is the most appropriate conclusion about welfare?