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Why may welfare differ among societies with the same real per capita GDP?

Answer and explanation

Correct answer: Because of differences in income distribution, environment, leisure and public services

Real per capita GDP is an average measure of inflation-adjusted output per person, but it does not show how income is distributed or fully capture quality of life. Two societies with the same average can differ in pollution, leisure, health and education services, and inequality. Option B is correct; A, C and D give either false or incomplete explanations.

Related tags

Gdp And WelfareWelfare ComparisonIncome DistributionPublic ServicesNational Income And Related AggregatesEconomicsClass 11 Mcq

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