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Which is the most balanced statement about GDP and welfare?

Answer and explanation

Correct answer: GDP indicates economic welfare but is not a complete measure

GDP is useful because higher production and income can support consumption and material living standards. However, it does not fully capture income distribution, unpaid work, health, safety, leisure, or environmental damage. Thus option B is the balanced conclusion. Option A denies its usefulness, while C and D make the unjustified claims that GDP measures every social problem or benefits everyone equally.

Related tags

Gdp And WelfareEconomic IndicatorLimitationsNational Income And Related AggregatesEconomicsClass 11 Mcq

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