Even if two countries have equal NDP per capita, why may their economic welfare differ?
Answer and explanation
Correct answer: Differences in income distribution and public services
Per-capita NDP is an average: total NDP divided by population. An equal average can hide very different income distributions; one country may have greater inequality while the other distributes income more broadly. Welfare also depends on access to health care, education, public safety, leisure, and environmental quality, which the aggregate does not fully measure. Currency names, flags, and census dates do not directly determine welfare. Hence option A is correct.
Frequently asked questions
What is the correct answer to this question?
Differences in income distribution and public services
Why is this the correct answer?
Per-capita NDP is an average: total NDP divided by population. An equal average can hide very different income distributions; one country may have greater inequality while the other distributes income more broadly. Welfare also depends on access to health care, education, public safety, leisure, and environmental quality, which the aggregate does not fully measure. Currency names, flags, and census dates do not directly determine welfare. Hence option A is correct.
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.
