If a country's real per capita GDP rises but access to nutritious food declines for low-income groups, what is the most appropriate conclusion?
Answer and explanation
Correct answer: The economic average has risen but broad welfare may decline because of weak distribution
Real per capita GDP is an average and does not reveal who receives income or essential goods. If low-income groups lose access to nutritious food, serious distributional and health effects can reduce broad welfare even while the average rises. Option A is correct. B assumes an unsupported universal improvement, C misunderstands averages, and D denies the importance of basic nutrition.
Frequently asked questions
What is the correct answer to this question?
The economic average has risen but broad welfare may decline because of weak distribution
Why is this the correct answer?
Real per capita GDP is an average and does not reveal who receives income or essential goods. If low-income groups lose access to nutritious food, serious distributional and health effects can reduce broad welfare even while the average rises. Option A is correct. B assumes an unsupported universal improvement, C misunderstands averages, and D denies the importance of basic nutrition.
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.
