If real GDP remains constant but average working time falls while output stays unchanged, what may happen?
Answer and explanation
Correct answer: Welfare may rise because leisure increases
Real GDP measures output at constant prices, so it can remain unchanged even when the same output is produced in fewer working hours. The saved time can become leisure, rest or time with family, which may improve quality of life. Thus option A is the best answer. The other choices are either logically unrelated or use unjustified certainty.
Frequently asked questions
What is the correct answer to this question?
Welfare may rise because leisure increases
Why is this the correct answer?
Real GDP measures output at constant prices, so it can remain unchanged even when the same output is produced in fewer working hours. The saved time can become leisure, rest or time with family, which may improve quality of life. Thus option A is the best answer. The other choices are either logically unrelated or use unjustified certainty.
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.
