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If production rises in a country but workplace accidents also increase sharply, what conclusion is appropriate?

Answer and explanation

Correct answer: Worker welfare may decline alongside GDP growth

GDP records the value of market production, not every cost imposed on workers. If production rises while accidents increase, medical costs or replacement activity may even add to measured expenditure, but injuries, pain, lost safety, and reduced quality of life can lower welfare. Option D is correct because higher output is not sufficient evidence of better worker welfare. The other choices treat GDP as a complete welfare measure.

Related tags

Workplace AccidentsWorker WelfareGdp GrowthGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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