If technological progress allows the same output to be produced with fewer resources and fewer working hours why may welfare rise even when GDP is unchanged?
Answer and explanation
Correct answer: More leisure and resource savings may improve quality of life
GDP records the value of measured output, not every benefit people receive from production. If technology produces the same output with fewer inputs and working hours, people may enjoy more leisure, lower resource pressure, and reduced costs. These benefits can raise welfare even without higher GDP. Option A is correct; B ignores non-market benefits, C is too narrow, and D confuses leisure with counted income.
Frequently asked questions
What is the correct answer to this question?
More leisure and resource savings may improve quality of life
Why is this the correct answer?
GDP records the value of measured output, not every benefit people receive from production. If technology produces the same output with fewer inputs and working hours, people may enjoy more leisure, lower resource pressure, and reduced costs. These benefits can raise welfare even without higher GDP. Option A is correct; B ignores non-market benefits, C is too narrow, and D confuses leisure with counted 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.
