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If unpaid, informal community care services increase, what difference between GDP and welfare is possible?

Answer and explanation

Correct answer: Welfare may rise while measured GDP changes very little

Unpaid informal care can provide people with valuable support, but because it is not exchanged in a market, much of its value may not be recorded in GDP. Thus welfare may improve while measured GDP changes very little. A is correct; the other options make claims that do not follow.

Related tags

Gdp And WelfareUnpaid CareNational Income And Related AggregatesEconomicsClass 11 Mcq

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