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In which situation is GDP more meaningful as an indicator of welfare?

Answer and explanation

Correct answer: When it is studied with income distribution and social indicators

GDP measures the market value of current production, but welfare also depends on distribution, health, education, safety and environmental conditions. GDP therefore becomes more meaningful when it is interpreted together with income distribution and social indicators. Option C is correct. A is incomplete, while B and D conceal or ignore important factors that affect people’s well-being.

Related tags

Social IndicatorsIncome DistributionGdp WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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