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If technological progress allows the same output to be produced with fewer resources and fewer working hours why may welfare rise even when GDP is unchanged?

Answer and explanation

Correct answer: More leisure and resource savings may improve quality of life

GDP records the value of measured output, not every benefit people receive from production. If technology produces the same output with fewer inputs and working hours, people may enjoy more leisure, lower resource pressure, and reduced costs. These benefits can raise welfare even without higher GDP. Option A is correct; B ignores non-market benefits, C is too narrow, and D confuses leisure with counted income.

Related tags

TechnologyProductivityLeisureResource-EfficiencyGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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