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What is the likely effect if access to public parks and clean air increases?

Answer and explanation

Correct answer: Welfare may rise even if its full value is not shown in GDP

Public parks and clean air are environmental amenities that can improve health, leisure, mental well-being and quality of life. Their benefits may be provided without a direct market price, so GDP may not record their full value. This illustrates why GDP is not a complete measure of welfare. The other options are extreme claims with no necessary connection to better environmental conditions; therefore C is correct.

Related tags

Public ParksClean AirEnvironmental WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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