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A country's real GDP growth comes mainly from producing military weapons. Which statement about civilian welfare is appropriate?

Answer and explanation

Correct answer: GDP may rise but an increase in civilian consumption welfare is not certain

Military weapons are produced goods and services, so their production can contribute to real GDP. However, GDP does not reveal whether output is directed toward civilian consumption, public safety, future investment, or military use. A rise in weapons output therefore does not guarantee a comparable rise in civilian satisfaction or consumption welfare. Option D is correct; B excludes valid production, while A and C make unsupported absolute claims.

Related tags

GdpWelfareMilitary-SpendingCompositionPublic-ExpenditureGdp And WelfareNational Income And Related AggregatesEconomics

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