What is the main reason for combining life expectancy and literacy with GDP?
Answer and explanation
Correct answer: They show non-income dimensions of health and education
GDP mainly indicates the monetary value of final goods and services, so it does not fully describe human development. Life expectancy supplies information about health, while literacy reflects educational achievement and capability. Therefore C is correct: these indicators add important non-income dimensions. They do not primarily prevent double counting, stabilise prices, or measure only trade.
Frequently asked questions
What is the correct answer to this question?
They show non-income dimensions of health and education
Why is this the correct answer?
GDP mainly indicates the monetary value of final goods and services, so it does not fully describe human development. Life expectancy supplies information about health, while literacy reflects educational achievement and capability. Therefore C is correct: these indicators add important non-income dimensions. They do not primarily prevent double counting, stabilise prices, or measure only trade.
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.
