Which step is most suitable for making economic growth welfare-enhancing?
Answer and explanation
Correct answer: Improvement in health, education and employment
Economic growth becomes welfare-enhancing when its benefits improve people’s capabilities and everyday living conditions. Better health and education raise human well-being and productivity, while more employment provides income and economic security. Removing environmental rules, increasing inequality and reducing public services can weaken welfare even if measured output rises. Therefore, option A gives the most appropriate inclusive approach.
Frequently asked questions
What is the correct answer to this question?
Improvement in health, education and employment
Why is this the correct answer?
Economic growth becomes welfare-enhancing when its benefits improve people’s capabilities and everyday living conditions. Better health and education raise human well-being and productivity, while more employment provides income and economic security. Removing environmental rules, increasing inequality and reducing public services can weaken welfare even if measured output rises. Therefore, option A gives the most appropriate inclusive approach.
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.
