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If output rises but crime in public places increases, what may happen to quality of life?

Answer and explanation

Correct answer: Quality of life may fall due to reduced safety

Higher output can increase measured GDP, but quality of life also depends on safety, freedom, and peace of mind. Rising crime may restrict people from using public spaces, increase fear and private security costs, and cause physical or psychological harm. Consequently, welfare and quality of life may decline even while GDP rises. Option C is correct. The other choices either make an unjustified certainty, deny the social effect, or confuse welfare with the ability to measure GDP.

Related tags

CrimeSafetyQuality Of LifeGdp WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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