Which of the following cannot be directly known from GDP?
Answer and explanation
Correct answer: Actual level of people’s happiness
GDP is a monetary measure of the value of final goods and services produced within a country’s domestic territory during a specified period. It can therefore provide information about measured production and economic activity. It cannot directly reveal people’s happiness, satisfaction, freedom or complete quality of life, because these are broader welfare dimensions. Hence option B is correct.
Frequently asked questions
What is the correct answer to this question?
Actual level of people’s happiness
Why is this the correct answer?
GDP is a monetary measure of the value of final goods and services produced within a country’s domestic territory during a specified period. It can therefore provide information about measured production and economic activity. It cannot directly reveal people’s happiness, satisfaction, freedom or complete quality of life, because these are broader welfare dimensions. Hence option B 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.
