If real income rises but longer working hours increase mental stress and reduce family time, what is the most balanced conclusion?
Answer and explanation
Correct answer: Economic welfare may rise but total human welfare may not necessarily rise
Real income can improve purchasing power and therefore economic welfare. Yet welfare is broader: additional work may impose mental stress and reduce leisure or family time, creating non-economic costs. Option D gives the balanced conclusion that economic welfare may rise without a necessary rise in total human welfare. A and B ignore these costs, while C contradicts the stated increase in real income.
Frequently asked questions
What is the correct answer to this question?
Economic welfare may rise but total human welfare may not necessarily rise
Why is this the correct answer?
Real income can improve purchasing power and therefore economic welfare. Yet welfare is broader: additional work may impose mental stress and reduce leisure or family time, creating non-economic costs. Option D gives the balanced conclusion that economic welfare may rise without a necessary rise in total human welfare. A and B ignore these costs, while C contradicts the stated increase in real income.
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.