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Which is the most scientific way to relate GDP to public welfare?

Answer and explanation

Correct answer: Studying distribution health education environment and leisure along with real per capita GDP

GDP measures the market value of final goods and services, but it is not a complete measure of welfare. Real per capita GDP adjusts output for population and price changes, while distribution, health, education, environmental quality, security and leisure reveal how people actually experience development. Therefore, option B is correct. Total or nominal GDP alone can rise because of population growth or inflation, even when average living conditions do not improve.

Related tags

Real Per Capita GdpWelfare IndicatorsEconomic DevelopmentDistributionGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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