If real GDP per capita rises but average life expectancy falls, what is the appropriate conclusion?
Answer and explanation
Correct answer: Different welfare indicators are moving in opposite directions
Economic welfare is multidimensional. Real GDP per capita measures average real output or income, whereas life expectancy reflects an important health and quality-of-life outcome. If the first rises and the second falls, the indicators send conflicting signals, so option B is correct. Option A wrongly assumes GDP alone determines welfare; C excludes a relevant welfare dimension, and D contradicts the premise.
Frequently asked questions
What is the correct answer to this question?
Different welfare indicators are moving in opposite directions
Why is this the correct answer?
Economic welfare is multidimensional. Real GDP per capita measures average real output or income, whereas life expectancy reflects an important health and quality-of-life outcome. If the first rises and the second falls, the indicators send conflicting signals, so option B is correct. Option A wrongly assumes GDP alone determines welfare; C excludes a relevant welfare dimension, and D contradicts the premise.
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.