If GDP rises in a country but access to safe housing declines which conclusion is appropriate?
Answer and explanation
Correct answer: One aspect of quality of life worsened despite economic growth
GDP growth indicates that the measured value of current production increased, but it does not guarantee that every important living condition improved. Safe housing affects security, health, dignity, and household well-being. If access declines, at least this dimension of quality of life has worsened, even while aggregate output rises. Therefore B is the appropriate conclusion. A is too absolute, C ignores a basic welfare need, and D does not follow from conflicting indicators.
Frequently asked questions
What is the correct answer to this question?
One aspect of quality of life worsened despite economic growth
Why is this the correct answer?
GDP growth indicates that the measured value of current production increased, but it does not guarantee that every important living condition improved. Safe housing affects security, health, dignity, and household well-being. If access declines, at least this dimension of quality of life has worsened, even while aggregate output rises. Therefore B is the appropriate conclusion. A is too absolute, C ignores a basic welfare need, and D does not follow from conflicting indicators.
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.
