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Which of the following raises social welfare but may not be fully reflected in GDP?

Answer and explanation

Correct answer: Free disaster relief by volunteers

GDP mainly records market-valued final goods and services, so unpaid work can be omitted or understated. Free disaster relief provided by volunteers can greatly improve safety and welfare, but no market payment is made for the service. Therefore option C is correct. Polluting fuel sales and weapons production are recorded market activities, while increased crime harms welfare rather than raising it.

Related tags

Voluntary ServiceNon-Market ActivitySocial WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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