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Under which condition is current welfare likely to be higher despite equal real GDP?

Answer and explanation

Correct answer: Cleaner environment, better health and more equal distribution

Equal real GDP means that measured real market output is the same, but it does not make all living conditions identical. A cleaner environment, better health services and a more equal distribution can raise people’s effective quality of life and current welfare without increasing recorded output. Option D is therefore correct. The other options describe conditions that generally reduce welfare through pollution, crime, inequality or lost leisure.

Related tags

Quality Of LifeHealthEnvironmentEqualityGdp WelfareGdp And WelfareNational Income And Related AggregatesEconomics

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