If per capita income rises but the school dropout rate also rises, what conclusion is appropriate?
Answer and explanation
Correct answer: Education indicators should also be considered with income
Per capita income shows average economic resources, but it does not describe every dimension of human welfare or how benefits are distributed. A rising dropout rate signals reduced educational participation and may harm skills, opportunities, and future earnings, even when average income rises. Therefore welfare cannot be judged from income alone. Education, health, security, and other social indicators should also be examined. Option D gives the complete and appropriate conclusion.
Frequently asked questions
What is the correct answer to this question?
Education indicators should also be considered with income
Why is this the correct answer?
Per capita income shows average economic resources, but it does not describe every dimension of human welfare or how benefits are distributed. A rising dropout rate signals reduced educational participation and may harm skills, opportunities, and future earnings, even when average income rises. Therefore welfare cannot be judged from income alone. Education, health, security, and other social indicators should also be examined. Option D gives the complete and appropriate conclusion.
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.
