Which of the following is a welfare-reducing situation?
Answer and explanation
Correct answer: Increase in crime rate
Welfare includes safety, security, health and quality of life, not merely income or output. A rise in the crime rate increases insecurity, fear and possible loss of property or life, thereby reducing welfare. Thus option C is correct. Higher literacy, access to clean water and expanded health services generally improve human capabilities, health and living conditions, so they are not welfare-reducing situations.
Frequently asked questions
What is the correct answer to this question?
Increase in crime rate
Why is this the correct answer?
Welfare includes safety, security, health and quality of life, not merely income or output. A rise in the crime rate increases insecurity, fear and possible loss of property or life, thereby reducing welfare. Thus option C is correct. Higher literacy, access to clean water and expanded health services generally improve human capabilities, health and living conditions, so they are not welfare-reducing situations.
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.
