Which is the most balanced statement about GDP and welfare?
Answer and explanation
Correct answer: GDP indicates economic welfare but is not a complete measure
GDP is useful because higher production and income can support consumption and material living standards. However, it does not fully capture income distribution, unpaid work, health, safety, leisure, or environmental damage. Thus option B is the balanced conclusion. Option A denies its usefulness, while C and D make the unjustified claims that GDP measures every social problem or benefits everyone equally.
Frequently asked questions
What is the correct answer to this question?
GDP indicates economic welfare but is not a complete measure
Why is this the correct answer?
GDP is useful because higher production and income can support consumption and material living standards. However, it does not fully capture income distribution, unpaid work, health, safety, leisure, or environmental damage. Thus option B is the balanced conclusion. Option A denies its usefulness, while C and D make the unjustified claims that GDP measures every social problem or benefits everyone equally.
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.
