What is the most balanced approach when using GDP as a welfare indicator?
Answer and explanation
Correct answer: Treat it as an important output measure while examining per capita income distribution environment health education and leisure
GDP is valuable because it measures the market value of current production, but it is not a complete measure of welfare. A balanced assessment should consider real GDP per capita together with income distribution, environmental quality, health, education, safety, and leisure. Option B uses GDP appropriately while adding relevant social indicators. The other options either reject a useful measure or draw excessive conclusions from nominal GDP or exports alone.
Frequently asked questions
What is the correct answer to this question?
Treat it as an important output measure while examining per capita income distribution environment health education and leisure
Why is this the correct answer?
GDP is valuable because it measures the market value of current production, but it is not a complete measure of welfare. A balanced assessment should consider real GDP per capita together with income distribution, environmental quality, health, education, safety, and leisure. Option B uses GDP appropriately while adding relevant social indicators. The other options either reject a useful measure or draw excessive conclusions from nominal GDP or exports alone.
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.
