If output rises but average life expectancy falls because of air pollution, what conclusion is appropriate?
Answer and explanation
Correct answer: Health welfare may fall despite output growth
GDP measures the market value of final goods and services, but it does not fully capture health, environmental quality, or quality of life. If output rises while pollution lowers life expectancy, economic production has increased but an important component of welfare has deteriorated. Thus option C is correct; the other choices wrongly treat GDP as a complete welfare measure or make an unrelated claim.
Frequently asked questions
What is the correct answer to this question?
Health welfare may fall despite output growth
Why is this the correct answer?
GDP measures the market value of final goods and services, but it does not fully capture health, environmental quality, or quality of life. If output rises while pollution lowers life expectancy, economic production has increased but an important component of welfare has deteriorated. Thus option C is correct; the other choices wrongly treat GDP as a complete welfare measure or make an unrelated claim.
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.
