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If output growth gives people more goods but mental stress also rises sharply what is the welfare conclusion?

Answer and explanation

Correct answer: The welfare effect is uncertain and both sides must be considered

The governing concept is that welfare is multidimensional. More goods can increase material consumption and convenience, but sharply higher mental stress can reduce health, leisure, relationships and overall quality of life. Without measuring the relative size of these benefits and costs, welfare cannot be declared definitely higher or lower. Therefore D is correct. Option C is also wrong because GDP may be correctly measuring output while remaining incomplete as a welfare measure.

Related tags

Mental StressGoods ConsumptionQuality Of LifeWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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