Greater production of which type of goods generally raises economic welfare?
Answer and explanation
Correct answer: Goods satisfying useful human needs
Economic welfare is generally related to the satisfaction people obtain from goods and services. Production that meets useful human needs can increase consumption possibilities and satisfaction, provided harmful side effects are considered. Therefore option A is correct. Harmful, wasteful or pollution-causing goods cannot automatically be treated as welfare-enhancing merely because their measured output rises, so B, C and D are unsuitable.
Frequently asked questions
What is the correct answer to this question?
Goods satisfying useful human needs
Why is this the correct answer?
Economic welfare is generally related to the satisfaction people obtain from goods and services. Production that meets useful human needs can increase consumption possibilities and satisfaction, provided harmful side effects are considered. Therefore option A is correct. Harmful, wasteful or pollution-causing goods cannot automatically be treated as welfare-enhancing merely because their measured output rises, so B, C and D are unsuitable.
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.
