Which country may have higher welfare despite the same per capita GDP?
Answer and explanation
Correct answer: Where health and education are better
Per capita GDP is an average monetary measure and does not describe every aspect of living conditions. If two countries have the same per capita GDP, the country providing better healthcare and education may achieve higher welfare because people enjoy stronger capabilities, longer and healthier lives, and better opportunities. Higher crime, pollution, or inequality generally weakens welfare. Therefore, option C is correct.
Frequently asked questions
What is the correct answer to this question?
Where health and education are better
Why is this the correct answer?
Per capita GDP is an average monetary measure and does not describe every aspect of living conditions. If two countries have the same per capita GDP, the country providing better healthcare and education may achieve higher welfare because people enjoy stronger capabilities, longer and healthier lives, and better opportunities. Higher crime, pollution, or inequality generally weakens welfare. Therefore, option C is correct.
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.
