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If the quality of government schools improves without an increase in fees what may happen to welfare?

Answer and explanation

Correct answer: Welfare may rise while the change in GDP is limited

The governing concept is that GDP measures the market value of current production, whereas welfare also includes quality, access and human-capital benefits. If government schools become better without charging higher fees, students may gain skills and opportunities even though measured public output changes little. Thus option A is correct; the other choices are absolute or logically unrelated.

Related tags

Education QualityHuman CapitalGdp And WelfarePublic ServicesNational Income And Related AggregatesEconomicsClass 11 Mcq

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