What should be examined to assess welfare when GDP rises?
Answer and explanation
Correct answer: Income distribution and quality of life
GDP records the value of output, but it does not show who receives the resulting income or whether living conditions improve. To assess welfare, examine income distribution, health, education, employment and quality of life. Therefore option B is correct. Country size, the currency’s name and the length of the year do not reveal how growth affects people.
Frequently asked questions
What is the correct answer to this question?
Income distribution and quality of life
Why is this the correct answer?
GDP records the value of output, but it does not show who receives the resulting income or whether living conditions improve. To assess welfare, examine income distribution, health, education, employment and quality of life. Therefore option B is correct. Country size, the currency’s name and the length of the year do not reveal how growth affects people.
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.
