Why is relying only on GDP misleading if crime increases demand for security equipment and medical services?
Answer and explanation
Correct answer: क्योंकि बाजार व्यय बढ़ सकता है जबकि सुरक्षा और स्वास्थ्य बिगड़ते हैं
GDP measures market production and expenditure, so purchases of alarms, security equipment, or medical treatment may increase measured output. However, that spending can be a defensive response to crime and does not represent an improvement in safety or health; it may merely repair social harm. Thus option C is correct. Options A and D incorrectly exclude valued services, while B is an absolute and false claim.
Frequently asked questions
What is the correct answer to this question?
क्योंकि बाजार व्यय बढ़ सकता है जबकि सुरक्षा और स्वास्थ्य बिगड़ते हैं
Why is this the correct answer?
GDP measures market production and expenditure, so purchases of alarms, security equipment, or medical treatment may increase measured output. However, that spending can be a defensive response to crime and does not represent an improvement in safety or health; it may merely repair social harm. Thus option C is correct. Options A and D incorrectly exclude valued services, while B is an absolute and false claim.
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.
