Which of the following is not an indicator of economic welfare?
Answer and explanation
Correct answer: Total GDP alone
Economic welfare is better judged through several indicators, including per capita income, availability of goods and services, employment, health and education. Total GDP alone measures the size of aggregate production but says nothing definite about population size, distribution, unemployment or environmental quality. Therefore option D is correct. The word “alone” is important: GDP can provide information, but it is insufficient as a complete welfare indicator.
Frequently asked questions
What is the correct answer to this question?
Total GDP alone
Why is this the correct answer?
Economic welfare is better judged through several indicators, including per capita income, availability of goods and services, employment, health and education. Total GDP alone measures the size of aggregate production but says nothing definite about population size, distribution, unemployment or environmental quality. Therefore option D is correct. The word “alone” is important: GDP can provide information, but it is insufficient as a complete welfare indicator.
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.
