When is the positive relationship between GDP and economic welfare likely to be stronger?

Correct answer: When output consists of useful goods and benefits are broadly distributed

GDP is more likely to reflect higher economic welfare when the additional output consists of goods and services that genuinely satisfy human needs and when the resulting benefits reach a broad share of the population. A is therefore correct. Rising pollution, greater inequality, defensive expenditure, and declining leisure or health can weaken or reverse the welfare effect even if measured output increases.