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Which of the following is a welfare-reducing situation?

Answer and explanation

Correct answer: Increase in crime rate

Welfare includes safety, security, health and quality of life, not merely income or output. A rise in the crime rate increases insecurity, fear and possible loss of property or life, thereby reducing welfare. Thus option C is correct. Higher literacy, access to clean water and expanded health services generally improve human capabilities, health and living conditions, so they are not welfare-reducing situations.

Related tags

Crime RateSafetyWelfare ReductionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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