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Which of the following is most likely to raise welfare along with GDP?

Answer and explanation

Correct answer: Expansion of clean drinking water services

Expansion of clean drinking-water services can involve current production and expenditure, thereby contributing to GDP. It also reduces disease, saves time, improves health, and supports a better quality of life, so welfare is likely to rise with output. Option A is therefore correct. Polluting production may increase GDP while harming health, unnecessary weapons are defensive or non-welfare-enhancing expenditure, and greater inequality can reduce broad welfare.

Related tags

Clean WaterPublic WelfareGdp GrowthGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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