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Which policy outcome is most likely to raise long-term social welfare while GDP remains constant?

Answer and explanation

Correct answer: Better public health, equal opportunity and lower environmental damage

Social welfare is multidimensional and includes health, fairness of opportunity and environmental quality in addition to market output. Better public health and equal opportunity can improve people’s capabilities and future prospects, while lower environmental damage protects welfare over time. These gains may occur through redistribution, regulation or improved services without changing current GDP. Options A and B reduce welfare through depletion and pollution, while C generally worsens distribution; therefore D is best.

Related tags

Social WelfarePublic HealthEqual OpportunityEnvironmentGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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