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Which country may have higher welfare despite the same per capita GDP?

Answer and explanation

Correct answer: Where health and education are better

Per capita GDP is an average monetary measure and does not describe every aspect of living conditions. If two countries have the same per capita GDP, the country providing better healthcare and education may achieve higher welfare because people enjoy stronger capabilities, longer and healthier lives, and better opportunities. Higher crime, pollution, or inequality generally weakens welfare. Therefore, option C is correct.

Related tags

Per Capita GdpWelfareHealthEducationGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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