If GDP rises while the air quality index worsens sharply what caution is needed in judging welfare?
Answer and explanation
Correct answer: Health and environmental damage should also be considered
GDP measures the market value of production, but it does not fully record the deterioration of environmental quality or the health costs caused by pollution. Worse air may increase respiratory illness, medical expenses, lost working days, and reduced enjoyment of life. Consequently, rising GDP alone cannot establish that welfare has improved. Option C is correct because a sound assessment combines output with health and environmental indicators; the other choices ignore or misuse the evidence.
Frequently asked questions
What is the correct answer to this question?
Health and environmental damage should also be considered
Why is this the correct answer?
GDP measures the market value of production, but it does not fully record the deterioration of environmental quality or the health costs caused by pollution. Worse air may increase respiratory illness, medical expenses, lost working days, and reduced enjoyment of life. Consequently, rising GDP alone cannot establish that welfare has improved. Option C is correct because a sound assessment combines output with health and environmental indicators; the other choices ignore or misuse the evidence.
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.
