Two countries have the same per capita GDP but one has better education and health services. Which country is likely to have higher welfare?
Answer and explanation
Correct answer: In the country with better education and health
Per capita GDP is an average monetary income measure; it does not fully capture access to public services or quality of life. Better education improves capabilities and future opportunities, while better health increases longevity and productivity. Thus the country with stronger education and health services is likely to have higher welfare, making B correct. Equal per capita GDP does not imply equal social outcomes.
Frequently asked questions
What is the correct answer to this question?
In the country with better education and health
Why is this the correct answer?
Per capita GDP is an average monetary income measure; it does not fully capture access to public services or quality of life. Better education improves capabilities and future opportunities, while better health increases longevity and productivity. Thus the country with stronger education and health services is likely to have higher welfare, making B correct. Equal per capita GDP does not imply equal social outcomes.
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.