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If free volunteer medical camps increase while market output remains constant what is possible?

Answer and explanation

Correct answer: Welfare may rise while GDP remains nearly unchanged

GDP mainly records the market value of final goods and services exchanged for money. Volunteer medical camps can improve health, prevent suffering and increase welfare, yet their unpaid services may not be fully included in measured GDP. Therefore, welfare can rise even when market output is almost unchanged. Options B and C use unjustified words such as “must,” while D wrongly denies the social value of unpaid work.

Related tags

Volunteer Medical ServiceNon-Market ActivityGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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