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If leisure time falls but market output rises in an economy, which conclusion is correct?

Answer and explanation

Correct answer: GDP may rise while quality of life may decline

GDP records the value of marketed goods and services, but unpaid leisure is not directly assigned a market value in national accounts. If people work longer, measured output and income may increase, while lost rest, family time, and personal satisfaction reduce quality of life. Therefore option D is correct. Option A is too absolute, B ignores the welfare value of leisure, and C contradicts the stated rise in output.

Related tags

LeisureQuality Of LifeGdp LimitationsNon-Market WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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