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If a large part of GDP comes from luxury services while basic health services are weak, what conclusion is appropriate?

Answer and explanation

Correct answer: High GDP does not guarantee broad welfare

The governing concept is that GDP records the monetary value of final output but does not show whether production meets essential needs or reaches all groups. Luxury services may increase GDP, while weak basic health care can restrict living standards and human welfare. Therefore option A is correct. The other options are absolute or contradict the importance of health services; GDP need not automatically fall.

Related tags

Luxury ServicesBasic NeedsGdp CompositionWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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