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Which change can raise welfare without changing GDP?

Answer and explanation

Correct answer: More equitable distribution of the same income

GDP records the total value of production or income, but it does not show how that income is distributed. If the same national income is distributed more fairly, poorer households can obtain better access to food, education, healthcare, and other necessities. Welfare may therefore rise even though total GDP is unchanged. Option D expresses this distribution effect. Pollution, inequality, or longer working hours may reduce quality of life rather than improve it.

Related tags

Income DistributionEquityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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