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Which approach is most suitable for a balanced assessment of welfare?

Answer and explanation

Correct answer: Considering per capita income, income distribution, health, education, environment and safety along with GDP

The governing concept is that GDP measures the market value of current production, not complete human welfare. A balanced assessment therefore combines GDP with per-capita income, distribution, health, education, environmental quality and personal security. Option B is correct because it includes both economic output and important quality-of-life dimensions. Total GDP alone can hide inequality, while share prices and money supply are too narrow to measure welfare.

Related tags

Multidimensional WelfareGdpSocial IndicatorsQuality Of LifeGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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