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If worker accidents rise along with output in an economy why may GDP overstate welfare?

Answer and explanation

Correct answer: Because output and treatment spending may be added while pain and loss of life are not fully deducted

GDP records the market value of goods and services, including medical treatment and repair services generated after accidents. It does not subtract pain, reduced quality of life, lost leisure, or the intrinsic cost of injury in a complete way. Thus output and accident-related spending can rise together while welfare falls, making option B correct. A, C, and D contradict how GDP is measured.

Related tags

Worker SafetyGdp And WelfareHealth CostsNational Income And Related AggregatesEconomicsClass 11 Mcq

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