If free volunteer medical camps increase while market output remains constant what is possible?
Answer and explanation
Correct answer: Welfare may rise while GDP remains nearly unchanged
GDP mainly records the market value of final goods and services exchanged for money. Volunteer medical camps can improve health, prevent suffering and increase welfare, yet their unpaid services may not be fully included in measured GDP. Therefore, welfare can rise even when market output is almost unchanged. Options B and C use unjustified words such as “must,” while D wrongly denies the social value of unpaid work.
Frequently asked questions
What is the correct answer to this question?
Welfare may rise while GDP remains nearly unchanged
Why is this the correct answer?
GDP mainly records the market value of final goods and services exchanged for money. Volunteer medical camps can improve health, prevent suffering and increase welfare, yet their unpaid services may not be fully included in measured GDP. Therefore, welfare can rise even when market output is almost unchanged. Options B and C use unjustified words such as “must,” while D wrongly denies the social value of unpaid work.
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.
