Economics
GDP and Welfare
Practice questions
Country A has real GDP of ₹1200 crore and population of (20) lakh while country B has real GDP of ₹900 crore and population of (10) lakh. Which has higher real output per person?A country provides free clean drinking water and waterborne diseases decline. If government spending is very small what may be the relationship between GDP and welfare?If a large share of output consists of goods that deteriorate quickly and provide little consumer satisfaction what problem arises despite equal GDP?Which adjustment can bring conventional GDP closer to environmental welfare?If voluntary community service increases and the need for market services declines how may recorded GDP and actual welfare change?If real GDP grows by (8%) but real GDP per capita grows by only (2%) approximately how much did population grow?In a city house rents rise increasing the monetary value of housing services while actual living quality remains unchanged. What caution is needed in welfare analysis?If the government spends more on prison services because the number of prisoners has increased why cannot higher GDP be treated as higher welfare?In a country average income per capita rises but the proportion of people below the poverty line also rises. What does this demonstrate?If technological progress allows the same output to be produced with fewer resources and fewer working hours why may welfare rise even when GDP is unchanged?A country has higher real GDP per capita but very low political freedom and personal security. Which statement is correct?If a country's real GDP rises by (5%) while the estimated social cost of pollution rises by an amount equal to (7%) of real output which statement about net welfare is more appropriate?In an economy childcare was previously provided unpaid within families but is now supplied for payment by centres. Other things being equal what will happen?Which combination is most appropriate for comparing overall welfare?