What may happen when access to clean drinking water increases?
Answer and explanation
Correct answer: Welfare may increase
Clean drinking water is an important non-market and public-health condition that can improve welfare even when its full value is not captured in GDP. Better water access reduces exposure to water-borne diseases, lowers treatment burdens, and supports healthier daily life. Therefore option A is correct. The other choices claim necessary negative effects without a valid economic basis.
Frequently asked questions
What is the correct answer to this question?
Welfare may increase
Why is this the correct answer?
Clean drinking water is an important non-market and public-health condition that can improve welfare even when its full value is not captured in GDP. Better water access reduces exposure to water-borne diseases, lowers treatment burdens, and supports healthier daily life. Therefore option A is correct. The other choices claim necessary negative effects without a valid economic basis.
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.
