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If a country’s GDP rises but democratic freedom and personal safety decline, what is the conclusion about welfare?

Answer and explanation

Correct answer: Non-economic welfare may decline

GDP is a monetary measure of market production within an economy; it does not directly measure civil liberties, political participation, personal security, or dignity. Thus, rising GDP can coexist with a deterioration in important non-economic dimensions of life. Option D is the balanced conclusion: economic production may have increased while broader human or non-economic welfare declined. A is too certain, B is conceptually false, and C does not follow because the GDP calculation may still be accurate.

Related tags

FreedomSafetyNon-Economic WelfareGdp LimitationsGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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