What is a likely welfare effect of jobless GDP growth?
Answer and explanation
Correct answer: Broad income security may not improve despite higher output
GDP measures the value of final production, but it does not guarantee that production creates enough jobs or that its gains reach most households. In jobless growth, output can rise through automation, capital-intensive activity, or productivity gains while unemployment and income insecurity remain. Therefore, option B is correct; the other options incorrectly assume automatic equality, full employment, or irrelevance of distribution.
Frequently asked questions
What is the correct answer to this question?
Broad income security may not improve despite higher output
Why is this the correct answer?
GDP measures the value of final production, but it does not guarantee that production creates enough jobs or that its gains reach most households. In jobless growth, output can rise through automation, capital-intensive activity, or productivity gains while unemployment and income insecurity remain. Therefore, option B is correct; the other options incorrectly assume automatic equality, full employment, or irrelevance of distribution.
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.
