Which type of growth may be called welfare-enhancing growth?
Answer and explanation
Correct answer: Growth that improves employment, health and education
Welfare-enhancing growth is assessed by the broader improvement it creates in people’s lives, not merely by a rise in money values. Growth that expands decent employment and improves health and education raises capabilities and living standards, so option D is correct. A price rise alone may reflect inflation, while pollution or inequality alone can reduce welfare despite higher output.
Frequently asked questions
What is the correct answer to this question?
Growth that improves employment, health and education
Why is this the correct answer?
Welfare-enhancing growth is assessed by the broader improvement it creates in people’s lives, not merely by a rise in money values. Growth that expands decent employment and improves health and education raises capabilities and living standards, so option D is correct. A price rise alone may reflect inflation, while pollution or inequality alone can reduce welfare 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.
