Which of the following is most likely to raise welfare along with GDP?
Answer and explanation
Correct answer: Expansion of clean drinking water services
Expansion of clean drinking-water services can involve current production and expenditure, thereby contributing to GDP. It also reduces disease, saves time, improves health, and supports a better quality of life, so welfare is likely to rise with output. Option A is therefore correct. Polluting production may increase GDP while harming health, unnecessary weapons are defensive or non-welfare-enhancing expenditure, and greater inequality can reduce broad welfare.
Frequently asked questions
What is the correct answer to this question?
Expansion of clean drinking water services
Why is this the correct answer?
Expansion of clean drinking-water services can involve current production and expenditure, thereby contributing to GDP. It also reduces disease, saves time, improves health, and supports a better quality of life, so welfare is likely to rise with output. Option A is therefore correct. Polluting production may increase GDP while harming health, unnecessary weapons are defensive or non-welfare-enhancing expenditure, and greater inequality can reduce broad welfare.
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.
