GDP increased in a country but average daily working hours rose sharply. What should be considered while assessing welfare?
Answer and explanation
Correct answer: Leisure and work-life balance
The governing concept is that welfare includes non-monetary dimensions, not only the value of goods and services. A rise in GDP may occur alongside much longer working hours, which can reduce leisure, rest, family time and quality of life. Hence option D is correct. Exports, tax collection or population may affect the economy, but none alone measures the lost leisure or work-life balance.
Frequently asked questions
What is the correct answer to this question?
Leisure and work-life balance
Why is this the correct answer?
The governing concept is that welfare includes non-monetary dimensions, not only the value of goods and services. A rise in GDP may occur alongside much longer working hours, which can reduce leisure, rest, family time and quality of life. Hence option D is correct. Exports, tax collection or population may affect the economy, but none alone measures the lost leisure or work-life balance.
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.
