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Greater production of which type of goods generally raises economic welfare?

Answer and explanation

Correct answer: Goods satisfying useful human needs

Economic welfare is generally related to the satisfaction people obtain from goods and services. Production that meets useful human needs can increase consumption possibilities and satisfaction, provided harmful side effects are considered. Therefore option A is correct. Harmful, wasteful or pollution-causing goods cannot automatically be treated as welfare-enhancing merely because their measured output rises, so B, C and D are unsuitable.

Related tags

Useful GoodsEconomic WelfareConsumer SatisfactionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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