What is necessary to make GDP growth a more reliable welfare indicator?
Answer and explanation
Correct answer: Study of social and environmental indicators as well
GDP measures the value of market production, but welfare also depends on health, education, safety, equality, leisure, and environmental quality. Studying social and environmental indicators alongside GDP gives a multidimensional assessment. Therefore option A is correct. Prices, money supply, or imports may help analyse particular economic issues, but none alone measures overall welfare reliably.
Frequently asked questions
What is the correct answer to this question?
Study of social and environmental indicators as well
Why is this the correct answer?
GDP measures the value of market production, but welfare also depends on health, education, safety, equality, leisure, and environmental quality. Studying social and environmental indicators alongside GDP gives a multidimensional assessment. Therefore option A is correct. Prices, money supply, or imports may help analyse particular economic issues, but none alone measures overall welfare reliably.
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.
