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Which of the following is a better social indicator of welfare than GDP alone?

Answer and explanation

Correct answer: Literacy rate

A social indicator should reflect people’s capabilities or living conditions rather than only the scale of production. Literacy rate measures access to and attainment in education, an important dimension of human development and welfare. Therefore option C is correct. Machines, foreign-exchange reserves and factory size are economic or production-related measures and do not directly show social well-being.

Related tags

Literacy RateSocial IndicatorHuman WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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