Two countries have equal real per capita GDP but one has better public health and education. Which country is likely to have higher welfare?
Answer and explanation
Correct answer: The country with better health and education
The governing concept is that welfare is multidimensional. Real per capita GDP indicates average inflation-adjusted output or income, but it does not fully capture access to public health, education, safety, or quality of life. Since both countries have the same income measure, the country with better health and education is likely to have higher welfare, making option C correct. Options A and B describe adverse conditions, while D wrongly treats GDP as a complete measure.
Frequently asked questions
What is the correct answer to this question?
The country with better health and education
Why is this the correct answer?
The governing concept is that welfare is multidimensional. Real per capita GDP indicates average inflation-adjusted output or income, but it does not fully capture access to public health, education, safety, or quality of life. Since both countries have the same income measure, the country with better health and education is likely to have higher welfare, making option C correct. Options A and B describe adverse conditions, while D wrongly treats GDP as a complete measure.
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.
