Which approach is most suitable for a balanced assessment of welfare?
Answer and explanation
Correct answer: Considering per capita income, income distribution, health, education, environment and safety along with GDP
The governing concept is that GDP measures the market value of current production, not complete human welfare. A balanced assessment therefore combines GDP with per-capita income, distribution, health, education, environmental quality and personal security. Option B is correct because it includes both economic output and important quality-of-life dimensions. Total GDP alone can hide inequality, while share prices and money supply are too narrow to measure welfare.
Frequently asked questions
What is the correct answer to this question?
Considering per capita income, income distribution, health, education, environment and safety along with GDP
Why is this the correct answer?
The governing concept is that GDP measures the market value of current production, not complete human welfare. A balanced assessment therefore combines GDP with per-capita income, distribution, health, education, environmental quality and personal security. Option B is correct because it includes both economic output and important quality-of-life dimensions. Total GDP alone can hide inequality, while share prices and money supply are too narrow to measure welfare.
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.
