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Which of the following directly affects welfare but is not fully measured in GDP?

Answer and explanation

Correct answer: Clean air

GDP mainly records the monetary value of market production and transactions. Clean air improves health, comfort, and quality of life, but its full benefit usually has no directly observed market price and is therefore not completely captured in GDP. Option C is correct. A and B are market-valued activities that can enter measured output, while tax receipts are recorded financial flows rather than an unpriced environmental benefit.

Related tags

Clean AirEnvironmental WelfareGdp LimitationsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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