If the workweek rises from forty hours to sixty hours and output increases by ten percent, which factor is essential for assessing welfare?
Answer and explanation
Correct answer: Lost leisure and work stress
The governing concept is that GDP records market production but does not fully record the costs of producing it. Increasing work time from 40 to 60 hours may raise output by 10%, yet workers lose leisure and may experience greater fatigue or stress. These effects can reduce welfare, so option B is essential. Output alone, export prices, or tax collection cannot provide a complete welfare assessment.
Frequently asked questions
What is the correct answer to this question?
Lost leisure and work stress
Why is this the correct answer?
The governing concept is that GDP records market production but does not fully record the costs of producing it. Increasing work time from 40 to 60 hours may raise output by 10%, yet workers lose leisure and may experience greater fatigue or stress. These effects can reduce welfare, so option B is essential. Output alone, export prices, or tax collection cannot provide a complete welfare assessment.
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.
