If GDP and per capita income both rise but domestic violence and mental stress also increase, what conclusion is appropriate?
Answer and explanation
Correct answer: Economic welfare may rise but total human welfare may not necessarily rise
GDP and per capita income measure market production or average economic income, but they do not fully capture safety, mental health, family well-being, or other non-market conditions. Thus economic welfare may improve while broader human welfare stagnates or declines. Option A is too absolute, B denies possible links, and C incorrectly claims GDP measures stress fully.
Frequently asked questions
What is the correct answer to this question?
Economic welfare may rise but total human welfare may not necessarily rise
Why is this the correct answer?
GDP and per capita income measure market production or average economic income, but they do not fully capture safety, mental health, family well-being, or other non-market conditions. Thus economic welfare may improve while broader human welfare stagnates or declines. Option A is too absolute, B denies possible links, and C incorrectly claims GDP measures stress fully.
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.
