Which additional question is most useful for assessing welfare when GDP rises?
Answer and explanation
Correct answer: Who received the benefits and what were the social costs
GDP measures the market value of final goods and services, but welfare also depends on who receives the gains and on the costs created by production. Therefore, asking about the distribution of benefits and social costs gives a more complete assessment. Option B is correct; the other options are unrelated factual questions and do not evaluate economic welfare or the quality of growth.
Frequently asked questions
What is the correct answer to this question?
Who received the benefits and what were the social costs
Why is this the correct answer?
GDP measures the market value of final goods and services, but welfare also depends on who receives the gains and on the costs created by production. Therefore, asking about the distribution of benefits and social costs gives a more complete assessment. Option B is correct; the other options are unrelated factual questions and do not evaluate economic welfare or the quality of growth.
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.
