If real per capita GDP and average life expectancy both rise what may this indicate?
Answer and explanation
Correct answer: A possible improvement in economic and health welfare
The governing concept is the use of multiple welfare indicators. Real per capita GDP reflects the quantity of goods and services available after removing the effect of price changes, while life expectancy reflects an important health outcome. If both rise, economic capacity and health conditions may have improved together. Therefore option A is the appropriate cautious interpretation; the other choices are unsupported or absurd.
Frequently asked questions
What is the correct answer to this question?
A possible improvement in economic and health welfare
Why is this the correct answer?
The governing concept is the use of multiple welfare indicators. Real per capita GDP reflects the quantity of goods and services available after removing the effect of price changes, while life expectancy reflects an important health outcome. If both rise, economic capacity and health conditions may have improved together. Therefore option A is the appropriate cautious interpretation; the other choices are unsupported or absurd.
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.
