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What is the most balanced way to use GDP as a measure of welfare?

Answer and explanation

Correct answer: Studying income distribution, social indicators, environment, and leisure along with real per capita GDP

Real per capita GDP is useful because it adjusts aggregate output for price changes and population size, giving a better indication of average material resources. Nevertheless, it does not show inequality, health, education, environmental damage, unpaid work, or leisure. A balanced welfare assessment therefore combines real per capita GDP with social, distributive, environmental, and quality-of-life indicators. Hence B is correct.

Related tags

Gdp And WelfareReal Per Capita GdpIncome DistributionSocial IndicatorsNational Income And Related AggregatesEconomicsClass 11 Mcq

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