If national output rises but leisure time falls sharply what may happen to welfare?
Answer and explanation
Correct answer: Welfare may fall
GDP measures marketed production, but welfare also includes non-market aspects of life such as rest, leisure and time with family. If output rises through much longer working hours and leisure falls sharply, the loss of well-being may offset part of the material gain. Therefore option D is correct. Options A and B ignore leisure, while option C incorrectly claims that GDP must fall.
Frequently asked questions
What is the correct answer to this question?
Welfare may fall
Why is this the correct answer?
GDP measures marketed production, but welfare also includes non-market aspects of life such as rest, leisure and time with family. If output rises through much longer working hours and leisure falls sharply, the loss of well-being may offset part of the material gain. Therefore option D is correct. Options A and B ignore leisure, while option C incorrectly claims that GDP must fall.
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.
