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If GDP rises but personal safety and civil freedom decline, what is the conclusion?

Answer and explanation

Correct answer: Non-economic welfare may decline

The governing concept is that GDP measures the market value of final goods and services, not every dimension of human welfare. Therefore, rising GDP can indicate greater economic output while declining safety and civil freedom reduce quality of life. Option D is correct because non-economic welfare may fall. Option A wrongly assumes GDP captures all welfare, while B denies an important welfare connection and C does not follow.

Related tags

Gdp And WelfarePersonal SafetyCivil FreedomNon-Economic WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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