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If a country's GDP rises but both life expectancy and literacy decline which statement is appropriate?

Answer and explanation

Correct answer: Economic output has risen but human welfare may have deteriorated

GDP measures the market value of final production, not every dimension of human well-being. Life expectancy reflects health outcomes and literacy reflects educational achievement; both are important welfare indicators. If GDP increases while these indicators decline, material production has risen but overall human welfare may have worsened. A definite improvement cannot be inferred from GDP alone. Options A and B overstate or deny GDP’s limitations, while D does not follow from the information.

Related tags

Gdp LimitationHuman DevelopmentLife ExpectancyGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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