If output rises but crime in public places increases, what may happen to quality of life?
Answer and explanation
Correct answer: Quality of life may fall due to reduced safety
Higher output can increase measured GDP, but quality of life also depends on safety, freedom, and peace of mind. Rising crime may restrict people from using public spaces, increase fear and private security costs, and cause physical or psychological harm. Consequently, welfare and quality of life may decline even while GDP rises. Option C is correct. The other choices either make an unjustified certainty, deny the social effect, or confuse welfare with the ability to measure GDP.
Frequently asked questions
What is the correct answer to this question?
Quality of life may fall due to reduced safety
Why is this the correct answer?
Higher output can increase measured GDP, but quality of life also depends on safety, freedom, and peace of mind. Rising crime may restrict people from using public spaces, increase fear and private security costs, and cause physical or psychological harm. Consequently, welfare and quality of life may decline even while GDP rises. Option C is correct. The other choices either make an unjustified certainty, deny the social effect, or confuse welfare with the ability to measure GDP.
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.
