A country's real GDP growth comes mainly from producing military weapons. Which statement about civilian welfare is appropriate?
Answer and explanation
Correct answer: GDP may rise but an increase in civilian consumption welfare is not certain
Military weapons are produced goods and services, so their production can contribute to real GDP. However, GDP does not reveal whether output is directed toward civilian consumption, public safety, future investment, or military use. A rise in weapons output therefore does not guarantee a comparable rise in civilian satisfaction or consumption welfare. Option D is correct; B excludes valid production, while A and C make unsupported absolute claims.
Frequently asked questions
What is the correct answer to this question?
GDP may rise but an increase in civilian consumption welfare is not certain
Why is this the correct answer?
Military weapons are produced goods and services, so their production can contribute to real GDP. However, GDP does not reveal whether output is directed toward civilian consumption, public safety, future investment, or military use. A rise in weapons output therefore does not guarantee a comparable rise in civilian satisfaction or consumption welfare. Option D is correct; B excludes valid production, while A and C make unsupported absolute claims.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
