Which of the following is a better social indicator of welfare than GDP alone?
Answer and explanation
Correct answer: Literacy rate
A social indicator should reflect people’s capabilities or living conditions rather than only the scale of production. Literacy rate measures access to and attainment in education, an important dimension of human development and welfare. Therefore option C is correct. Machines, foreign-exchange reserves and factory size are economic or production-related measures and do not directly show social well-being.
Frequently asked questions
What is the correct answer to this question?
Literacy rate
Why is this the correct answer?
A social indicator should reflect people’s capabilities or living conditions rather than only the scale of production. Literacy rate measures access to and attainment in education, an important dimension of human development and welfare. Therefore option C is correct. Machines, foreign-exchange reserves and factory size are economic or production-related measures and do not directly show social well-being.
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.
