A country's real per capita GDP rose but average life expectancy fell. What does this show?
Answer and explanation
Correct answer: Economic output and human welfare can move in different directions
The governing concept is that GDP is an important output indicator but not a complete measure of human welfare. Real per capita GDP may rise while pollution, inequality, poor healthcare, stress, or other social conditions reduce life expectancy. Thus option A is correct: economic and social indicators can move in opposite directions. Option B denies the welfare relevance of health, while C and D claim facts that cannot be inferred from the information given.
Frequently asked questions
What is the correct answer to this question?
Economic output and human welfare can move in different directions
Why is this the correct answer?
The governing concept is that GDP is an important output indicator but not a complete measure of human welfare. Real per capita GDP may rise while pollution, inequality, poor healthcare, stress, or other social conditions reduce life expectancy. Thus option A is correct: economic and social indicators can move in opposite directions. Option B denies the welfare relevance of health, while C and D claim facts that cannot be inferred from the information given.
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.
