If a country's GDP rises but both life expectancy and literacy decline which statement is appropriate?
Answer and explanation
Correct answer: Economic output has risen but human welfare may have deteriorated
GDP measures the market value of final production, not every dimension of human well-being. Life expectancy reflects health outcomes and literacy reflects educational achievement; both are important welfare indicators. If GDP increases while these indicators decline, material production has risen but overall human welfare may have worsened. A definite improvement cannot be inferred from GDP alone. Options A and B overstate or deny GDP’s limitations, while D does not follow from the information.
Frequently asked questions
What is the correct answer to this question?
Economic output has risen but human welfare may have deteriorated
Why is this the correct answer?
GDP measures the market value of final production, not every dimension of human well-being. Life expectancy reflects health outcomes and literacy reflects educational achievement; both are important welfare indicators. If GDP increases while these indicators decline, material production has risen but overall human welfare may have worsened. A definite improvement cannot be inferred from GDP alone. Options A and B overstate or deny GDP’s limitations, while D does not follow from the information.
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.
