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If factory output rises but workers experience more illness and less leisure what conclusion is appropriate?

Answer and explanation

Correct answer: GDP may rise while worker welfare declines

The governing concept is the difference between measured market output and overall welfare. Greater factory production raises the value of goods recorded in GDP, but illness imposes health costs and reduced leisure lowers workers' quality of life. These effects may not be fully deducted from GDP. Therefore option A is correct. The other choices either assume welfare must follow output or deny the relevance of health and leisure.

Related tags

Factory OutputWorker HealthLeisureWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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