What is likely if sanitation and public transport improve along with GDP growth?
Answer and explanation
Correct answer: Public welfare may also increase
The governing concept is that GDP measures the value of production, while welfare also depends on health, mobility, public services and living conditions. If sanitation improves, disease risks may fall, and better transport can improve access to work, education and healthcare. Therefore public welfare may also rise, making option A correct. Inequality need not automatically increase, and the other two options contradict the likely effects of improved services.
Frequently asked questions
What is the correct answer to this question?
Public welfare may also increase
Why is this the correct answer?
The governing concept is that GDP measures the value of production, while welfare also depends on health, mobility, public services and living conditions. If sanitation improves, disease risks may fall, and better transport can improve access to work, education and healthcare. Therefore public welfare may also rise, making option A correct. Inequality need not automatically increase, and the other two options contradict the likely effects of improved services.
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.