What is possible if GDP rises but average working hours become very long?
Answer and explanation
Correct answer: Quality of life may be affected because leisure falls
The governing concept is that GDP measures the market value of final goods and services, not every dimension of welfare. If GDP rises because people work much longer, production may increase, but leisure, family time, rest, and health may decline. Therefore, quality of life can be harmed even alongside higher GDP, making option B correct. Options A, C, and D make unsupported automatic claims about happiness, equality, or pollution.
Frequently asked questions
What is the correct answer to this question?
Quality of life may be affected because leisure falls
Why is this the correct answer?
The governing concept is that GDP measures the market value of final goods and services, not every dimension of welfare. If GDP rises because people work much longer, production may increase, but leisure, family time, rest, and health may decline. Therefore, quality of life can be harmed even alongside higher GDP, making option B correct. Options A, C, and D make unsupported automatic claims about happiness, equality, or pollution.
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.
