Economics
GDP and Welfare
Practice questions
Why is the loss from destruction of many old houses in a natural disaster not fully shown in GDP?If free community care services increase in an economy, what difference between GDP and welfare is possible?Why may broad welfare gains be limited if output growth mainly comes from luxury goods for high-income groups?If the quality of public education improves without an increase in fees, what difference may arise between actual welfare and GDP?If output growth is based on depletion of non-renewable resources and rising pollution, what type of growth is it?If real GDP rises but the unemployment rate also increases, which analysis is most appropriate?If a country has high per capita GDP but access to clean water is highly unequal, what conclusion follows?If pollution reduces people’s work capacity and raises medical spending, what is the possible effect on net welfare?If a falling crime rate reduces government spending on prisons and security, which conclusion is correct?If output growth is accompanied by improvements in air quality, life expectancy, and literacy, what conclusion becomes stronger?If a large part of GDP accrues as profits to a few companies while wages remain stagnant, what does it indicate?If industrial production pollutes a river and lowers fishermen's income, what problem is shown?If GDP and per capita income both rise but domestic violence and mental stress also increase, what conclusion is appropriate?If a large share of a country's output is exported and the availability of essential goods at home declines, what is possible?Why may social welfare rise if expanded public healthcare reduces medical costs for poor families at the same GDP?If real GDP rises but the value of natural capital falls rapidly, which limitation of ordinary GDP becomes evident?If high GDP growth is accompanied by deterioration in education, health, and employment, what is the most appropriate conclusion?In which situation is a positive relationship between GDP and welfare most likely?What is the most balanced way to use GDP as a measure of welfare?If real GDP rises but real GDP per capita falls, which conclusion is most appropriate?