Why can success of economic policy not be measured only by a rise in national income?
Answer and explanation
Correct answer: Because employment, price stability, income distribution and social welfare are also important
National income measures the value of economic activity, but it does not fully reveal who receives the income, whether employment is adequate, whether prices are stable, or whether environmental and social conditions are improving. A sound macroeconomic policy therefore balances growth with employment, price stability, equity and welfare. Hence, option A is correct.
Frequently asked questions
What is the correct answer to this question?
Because employment, price stability, income distribution and social welfare are also important
Why is this the correct answer?
National income measures the value of economic activity, but it does not fully reveal who receives the income, whether employment is adequate, whether prices are stable, or whether environmental and social conditions are improving. A sound macroeconomic policy therefore balances growth with employment, price stability, equity and welfare. Hence, option A is correct.
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.
