If GDP rises in a country but access to safe drinking water declines which conclusion is correct?
Answer and explanation
Correct answer: An important aspect of quality of life has worsened despite economic growth
GDP can increase because market production and income have expanded, yet it does not guarantee improvement in every component of quality of life. Safe drinking water is a basic health and living-condition indicator; declining access represents a welfare loss even alongside economic growth. D is therefore correct. A is too absolute, B does not follow from a welfare change, and C ignores the direct health importance of safe water.
Frequently asked questions
What is the correct answer to this question?
An important aspect of quality of life has worsened despite economic growth
Why is this the correct answer?
GDP can increase because market production and income have expanded, yet it does not guarantee improvement in every component of quality of life. Safe drinking water is a basic health and living-condition indicator; declining access represents a welfare loss even alongside economic growth. D is therefore correct. A is too absolute, B does not follow from a welfare change, and C ignores the direct health importance of safe water.
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.