If production rises in a country but workplace accidents also increase sharply, what conclusion is appropriate?
Answer and explanation
Correct answer: Worker welfare may decline alongside GDP growth
GDP records the value of market production, not every cost imposed on workers. If production rises while accidents increase, medical costs or replacement activity may even add to measured expenditure, but injuries, pain, lost safety, and reduced quality of life can lower welfare. Option D is correct because higher output is not sufficient evidence of better worker welfare. The other choices treat GDP as a complete welfare measure.
Frequently asked questions
What is the correct answer to this question?
Worker welfare may decline alongside GDP growth
Why is this the correct answer?
GDP records the value of market production, not every cost imposed on workers. If production rises while accidents increase, medical costs or replacement activity may even add to measured expenditure, but injuries, pain, lost safety, and reduced quality of life can lower welfare. Option D is correct because higher output is not sufficient evidence of better worker welfare. The other choices treat GDP as a complete welfare measure.
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.
