Which indicators should be used with GDP for a better assessment of welfare?
Answer and explanation
Correct answer: Health, education, employment, income distribution, environment and safety
GDP is useful for measuring market production, but welfare is multidimensional. A better assessment should also examine health, education, employment, distribution of income, environmental quality and personal safety. These indicators reveal outcomes that GDP alone can miss. Therefore option B is correct; exports, money supply or tax revenue alone provide only narrow economic information.
Frequently asked questions
What is the correct answer to this question?
Health, education, employment, income distribution, environment and safety
Why is this the correct answer?
GDP is useful for measuring market production, but welfare is multidimensional. A better assessment should also examine health, education, employment, distribution of income, environmental quality and personal safety. These indicators reveal outcomes that GDP alone can miss. Therefore option B is correct; exports, money supply or tax revenue alone provide only narrow economic information.
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.
