Which change can raise welfare without changing GDP?
Answer and explanation
Correct answer: More equitable distribution of the same income
GDP records the total value of production or income, but it does not show how that income is distributed. If the same national income is distributed more fairly, poorer households can obtain better access to food, education, healthcare, and other necessities. Welfare may therefore rise even though total GDP is unchanged. Option D expresses this distribution effect. Pollution, inequality, or longer working hours may reduce quality of life rather than improve it.
Frequently asked questions
What is the correct answer to this question?
More equitable distribution of the same income
Why is this the correct answer?
GDP records the total value of production or income, but it does not show how that income is distributed. If the same national income is distributed more fairly, poorer households can obtain better access to food, education, healthcare, and other necessities. Welfare may therefore rise even though total GDP is unchanged. Option D expresses this distribution effect. Pollution, inequality, or longer working hours may reduce quality of life rather than improve it.
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.
