If a country's real GDP rises but leisure time falls sharply what can be said about welfare?

Correct answer: No definite conclusion can be drawn from real GDP alone

Real GDP is an indicator of market-valued production at constant prices, not a complete measure of welfare. Leisure has value, and a sharp loss of leisure may reduce well-being even when market output rises. Without information about the size of the leisure loss, distribution, health, environment and other factors, no definite welfare conclusion follows from real GDP alone. Thus C is correct; A and B are unjustified absolutes, while D is unrelated.