Among two countries with equal per capita GDP, which may have better welfare?
Answer and explanation
Correct answer: The one with better health and education services
Per capita GDP is an average and does not capture the complete quality of life. If two countries have the same average output or income, the country providing better health and education can achieve greater human capabilities and well-being. Thus option B is correct. More pollution, inequality or crime generally harms welfare and cannot be considered an advantage by itself.
Frequently asked questions
What is the correct answer to this question?
The one with better health and education services
Why is this the correct answer?
Per capita GDP is an average and does not capture the complete quality of life. If two countries have the same average output or income, the country providing better health and education can achieve greater human capabilities and well-being. Thus option B is correct. More pollution, inequality or crime generally harms welfare and cannot be considered an advantage by itself.
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.
