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If a country's GDP rises but the number of public libraries and community centres falls, what may happen to social welfare?

Answer and explanation

Correct answer: Social welfare may fall because community opportunities decline

The governing concept is that GDP measures the market value of final goods and services, but it is not a complete measure of welfare. If GDP rises while libraries and community centres decline, people may lose access to education, culture, recreation, and social support. Therefore, welfare may decrease despite higher GDP, making option B correct. Options C and D do not logically follow, while A ignores important non-market services.

Related tags

Gdp LimitationsPublic ServicesSocial WelfareNon-Market ServicesGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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