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Which of the following is not an indicator of economic welfare?

Answer and explanation

Correct answer: Total GDP alone

Economic welfare is better judged through several indicators, including per capita income, availability of goods and services, employment, health and education. Total GDP alone measures the size of aggregate production but says nothing definite about population size, distribution, unemployment or environmental quality. Therefore option D is correct. The word “alone” is important: GDP can provide information, but it is insufficient as a complete welfare indicator.

Related tags

Economic WelfareGdp LimitationIndicatorsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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