What can be said about welfare if excessive weapons production raises GDP?
Answer and explanation
Correct answer: Public welfare will not necessarily rise
GDP measures the value of final production, so weapons output can increase measured GDP when it is produced and sold. However, GDP does not reveal whether the output meets basic human needs, improves security, is equally distributed, or creates opportunity costs by diverting resources from education, health, and consumption. Excessive weapons production may therefore raise GDP without raising overall welfare. Option D is correct.
Frequently asked questions
What is the correct answer to this question?
Public welfare will not necessarily rise
Why is this the correct answer?
GDP measures the value of final production, so weapons output can increase measured GDP when it is produced and sold. However, GDP does not reveal whether the output meets basic human needs, improves security, is equally distributed, or creates opportunity costs by diverting resources from education, health, and consumption. Excessive weapons production may therefore raise GDP without raising overall welfare. Option D is correct.
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.
