Why are life expectancy and literacy combined with GDP when assessing human welfare?
Answer and explanation
Correct answer: They show non-income dimensions of health and education
GDP primarily represents the value of market production and income, but human welfare also depends on capabilities that income alone cannot fully reveal. Life expectancy indicates an important health outcome, while literacy reflects access to and attainment in education. C is correct because these indicators add non-income dimensions. They do not prevent double counting, stabilise prices, or measure only exports.
Frequently asked questions
What is the correct answer to this question?
They show non-income dimensions of health and education
Why is this the correct answer?
GDP primarily represents the value of market production and income, but human welfare also depends on capabilities that income alone cannot fully reveal. Life expectancy indicates an important health outcome, while literacy reflects access to and attainment in education. C is correct because these indicators add non-income dimensions. They do not prevent double counting, stabilise prices, or measure only exports.
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.
