If output rises but workplace accidents also increase sharply which conclusion is correct?
Answer and explanation
Correct answer: GDP may rise while worker welfare declines
GDP records the value of current market production, but it does not automatically adjust for pain, injury, lost safety, or reduced quality of working life. If output rises while workplace accidents increase sharply, production may expand even as workers face greater health and personal costs. D is correct. The other choices wrongly treat output growth as a complete welfare measure or deny accident costs.
Frequently asked questions
What is the correct answer to this question?
GDP may rise while worker welfare declines
Why is this the correct answer?
GDP records the value of current market production, but it does not automatically adjust for pain, injury, lost safety, or reduced quality of working life. If output rises while workplace accidents increase sharply, production may expand even as workers face greater health and personal costs. D is correct. The other choices wrongly treat output growth as a complete welfare measure or deny accident costs.
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.