Which type of economic growth is considered welfare-enhancing?
Answer and explanation
Correct answer: Growth that raises employment and keeps pollution low
Welfare-enhancing growth should improve people’s real living conditions rather than merely increase monetary values. Growth that creates employment raises incomes and opportunities, while low pollution protects health and the environment. Therefore option B combines two important welfare benefits and is correct. A price rise alone may reflect inflation, whereas greater inequality or poorer public health can leave welfare unchanged or lower despite higher output.
Frequently asked questions
What is the correct answer to this question?
Growth that raises employment and keeps pollution low
Why is this the correct answer?
Welfare-enhancing growth should improve people’s real living conditions rather than merely increase monetary values. Growth that creates employment raises incomes and opportunities, while low pollution protects health and the environment. Therefore option B combines two important welfare benefits and is correct. A price rise alone may reflect inflation, whereas greater inequality or poorer public health can leave welfare unchanged or lower despite higher output.
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.
