Economics
GDP and Welfare
Practice questions
In an economy output of polluting industries rose and spending on pollution treatment also increased. What is the likely effect on GDP and welfare?Two countries have equal real per capita GDP but one has better public health and education. Which country is likely to have higher welfare?In which situation would growth in nominal GDP least reliably indicate an increase in welfare?If market-purchased childcare is replaced by unpaid care from a family member what difference may arise between measured GDP and actual welfare?If a country's total GDP rises by ten percent and population rises by twelve percent what is the appropriate conclusion about per capita output?Which of the following best shows a dual limitation of GDP as a welfare measure?A dam project raises electricity production but displaces many families. What should be done while assessing welfare?A country has high average income but weak nutrition and health indicators. What does this suggest?In which situation may the welfare of future generations fall even when GDP rises?Why may welfare assessment based on GDP be misleading if crime raises private security and medical spending?If leisure time falls but market output rises in an economy, which conclusion is correct?Volunteer services increase in an economy while market output remains constant. What is the likely effect on welfare and GDP?If total real GDP remains constant but income shifts from the poor to the rich, what may happen to social welfare?Why is real GDP considered more useful than nominal GDP for welfare comparisons?If government spending on prisons rises because crime has increased, how should GDP and welfare be interpreted?A country's real per capita GDP rose but average life expectancy fell. What does this show?If fuel sales rise because commuting time becomes longer in a city, what effect on GDP and welfare is possible?Which of the following most clearly shows the effect of the composition of GDP on welfare?If natural forests are cut and timber is sold what problem arises in GDP measurement?Among two countries with equal total GDP which country will have higher per capita GDP?