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Why can two countries with equal GDP have different welfare levels?

Answer and explanation

Correct answer: Population, income distribution, and public services may differ

Equal total GDP only means that the two economies have the same measured aggregate output, subject to comparable valuation. It does not imply equal population, per-person output, income distribution, environmental quality, or access to health and education services. A country with a smaller population or better public services may provide higher average welfare. Therefore option D is correct, while A, B, and C make unsupported claims of equality.

Related tags

Country ComparisonPublic ServicesIncome DistributionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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