If a country has high per capita GDP but access to clean water is highly unequal, what conclusion follows?
Answer and explanation
Correct answer: Average income may hide inequality in distribution and service access
Per capita GDP is an average obtained by dividing total GDP by population. An average can be high even when income and essential services are distributed very unevenly. Clean water is a basic welfare component, so unequal access shows why GDP per person cannot by itself establish that everyone enjoys a good standard of living. B is correct; A is an unjustified guarantee, while C and D are plainly false.
Frequently asked questions
What is the correct answer to this question?
Average income may hide inequality in distribution and service access
Why is this the correct answer?
Per capita GDP is an average obtained by dividing total GDP by population. An average can be high even when income and essential services are distributed very unevenly. Clean water is a basic welfare component, so unequal access shows why GDP per person cannot by itself establish that everyone enjoys a good standard of living. B is correct; A is an unjustified guarantee, while C and D are plainly false.
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.
