Which policy outcome is most likely to raise long-term social welfare while GDP remains constant?
Answer and explanation
Correct answer: Better public health, equal opportunity and lower environmental damage
Social welfare is multidimensional and includes health, fairness of opportunity and environmental quality in addition to market output. Better public health and equal opportunity can improve people’s capabilities and future prospects, while lower environmental damage protects welfare over time. These gains may occur through redistribution, regulation or improved services without changing current GDP. Options A and B reduce welfare through depletion and pollution, while C generally worsens distribution; therefore D is best.
Frequently asked questions
What is the correct answer to this question?
Better public health, equal opportunity and lower environmental damage
Why is this the correct answer?
Social welfare is multidimensional and includes health, fairness of opportunity and environmental quality in addition to market output. Better public health and equal opportunity can improve people’s capabilities and future prospects, while lower environmental damage protects welfare over time. These gains may occur through redistribution, regulation or improved services without changing current GDP. Options A and B reduce welfare through depletion and pollution, while C generally worsens distribution; therefore D is best.
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.
