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Why may social welfare rise if expanded public healthcare reduces medical costs for poor families at the same GDP?

Answer and explanation

Correct answer: Because access to an essential service and real disposable income improve

Public healthcare can provide an essential service directly and reduce the amount that poor households must spend privately on treatment. The money saved becomes available for food, education, housing, or other needs, so their real purchasing capacity and security improve even when measured GDP is unchanged. Option B captures both access and effective disposable income; the other options are factually impossible or conceptually wrong.

Related tags

Gdp And WelfarePublic HealthcareDisposable IncomePoor HouseholdsNational Income And Related AggregatesEconomicsClass 11 Mcq

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