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What may cause low welfare even in a country with high GDP?

Answer and explanation

Correct answer: Extreme income inequality

GDP measures the total value of production, but it does not show how income and benefits are distributed among citizens. If extreme income inequality exists, a large share of national income may go to a small group while many people lack adequate food, healthcare, education or housing. High literacy, a clean environment and accessible healthcare generally support welfare, so option D is correct.

Related tags

High GdpIncome InequalityLow WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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