If leisure time falls but market output rises in an economy, which conclusion is correct?
Answer and explanation
Correct answer: GDP may rise while quality of life may decline
GDP records the value of marketed goods and services, but unpaid leisure is not directly assigned a market value in national accounts. If people work longer, measured output and income may increase, while lost rest, family time, and personal satisfaction reduce quality of life. Therefore option D is correct. Option A is too absolute, B ignores the welfare value of leisure, and C contradicts the stated rise in output.
Frequently asked questions
What is the correct answer to this question?
GDP may rise while quality of life may decline
Why is this the correct answer?
GDP records the value of marketed goods and services, but unpaid leisure is not directly assigned a market value in national accounts. If people work longer, measured output and income may increase, while lost rest, family time, and personal satisfaction reduce quality of life. Therefore option D is correct. Option A is too absolute, B ignores the welfare value of leisure, and C contradicts the stated rise in output.
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.
