Two countries have equal real per capita GDP but one has a more equal income distribution. Which country is likely to have higher broad welfare?
Answer and explanation
Correct answer: अधिक समान वितरण वाला देश
The governing concept is that GDP per person measures average production or income, not how that income is shared. If real per capita GDP is equal, the country with a more equal distribution is more likely to provide broader access to goods and services, so option C is correct. Option A reverses the welfare implication, B ignores inequality, and D treats population size as decisive when the comparison is per person.
Frequently asked questions
What is the correct answer to this question?
अधिक समान वितरण वाला देश
Why is this the correct answer?
The governing concept is that GDP per person measures average production or income, not how that income is shared. If real per capita GDP is equal, the country with a more equal distribution is more likely to provide broader access to goods and services, so option C is correct. Option A reverses the welfare implication, B ignores inequality, and D treats population size as decisive when the comparison is per person.
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.