What is the best approach when comparing GDP and welfare?
Answer and explanation
Correct answer: Considering social and environmental indicators along with GDP
GDP is a useful measure of market production, but it does not fully capture distribution, health, education, safety, leisure, environmental quality or unpaid work. A sound welfare assessment therefore combines GDP with relevant social and environmental indicators. Option A is correct; prices or population alone are insufficient, and GDP alone gives only a partial picture.
Frequently asked questions
What is the correct answer to this question?
Considering social and environmental indicators along with GDP
Why is this the correct answer?
GDP is a useful measure of market production, but it does not fully capture distribution, health, education, safety, leisure, environmental quality or unpaid work. A sound welfare assessment therefore combines GDP with relevant social and environmental indicators. Option A is correct; prices or population alone are insufficient, and GDP alone gives only a partial picture.
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.
