If a country's GDP rises but access to nutritious food falls for poor families, what conclusion is appropriate?
Answer and explanation
Correct answer: Welfare of poor families may fall
GDP measures the value of final goods and services produced, but it does not show how income and necessities are distributed. If poor families lose access to nutritious food, their health, capability and quality of life may worsen even while total GDP increases. Thus option B is correct. Option A assumes universal welfare, while C and D make conclusions that do not follow from the information given.
Frequently asked questions
What is the correct answer to this question?
Welfare of poor families may fall
Why is this the correct answer?
GDP measures the value of final goods and services produced, but it does not show how income and necessities are distributed. If poor families lose access to nutritious food, their health, capability and quality of life may worsen even while total GDP increases. Thus option B is correct. Option A assumes universal welfare, while C and D make conclusions that do not follow from the information given.
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.
