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Even if two countries have equal NDP per capita, why may their economic welfare differ?

Answer and explanation

Correct answer: Differences in income distribution and public services

Per-capita NDP is an average: total NDP divided by population. An equal average can hide very different income distributions; one country may have greater inequality while the other distributes income more broadly. Welfare also depends on access to health care, education, public safety, leisure, and environmental quality, which the aggregate does not fully measure. Currency names, flags, and census dates do not directly determine welfare. Hence option A is correct.

Related tags

NdpWelfarePer Capita IncomeIncome DistributionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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