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What is the most appropriate conclusion when comparing GDP and human welfare?

Answer and explanation

Correct answer: Social, environmental and distributional factors should also be considered with GDP

GDP is useful because it summarises the market value of production, but human welfare is broader than production alone. A sound comparison should also consider income distribution, employment, health, education, environmental quality, leisure and access to public services. GDP alone is therefore insufficient, while the claim that production has no relation to welfare is also incorrect. Option D gives the balanced conclusion.

Related tags

Human WelfareSocial FactorsEnvironmental FactorsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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