What affects the level of economic welfare?
Answer and explanation
Correct answer: The quantity and distribution of goods and services
The governing concept is that economic welfare depends not only on how much an economy produces, but also on who receives and uses that output. A larger quantity of useful goods and services can improve living standards, while unequal distribution may prevent many people from benefiting. Therefore, option D is correct. The country’s name, currency colour, or weather alone does not measure welfare.
Frequently asked questions
What is the correct answer to this question?
The quantity and distribution of goods and services
Why is this the correct answer?
The governing concept is that economic welfare depends not only on how much an economy produces, but also on who receives and uses that output. A larger quantity of useful goods and services can improve living standards, while unequal distribution may prevent many people from benefiting. Therefore, option D is correct. The country’s name, currency colour, or weather alone does not measure welfare.
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.
