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If two countries have equal real per capita income but the first has a much higher crime rate, which is likely to have greater welfare?

Answer and explanation

Correct answer: The second country

Real per capita income measures average purchasing power after allowing for price changes, but welfare also depends on non-income conditions. A high crime rate can reduce personal safety, freedom, mental well-being, and quality of life. Since the second country has the lower crime rate while income is equal, it is more likely to have greater welfare; therefore option B is correct. Equal income does not guarantee equal welfare, so C is too strong.

Related tags

Crime RateQuality Of LifeReal Per Capita IncomeWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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