Why may social welfare rise if expanded public healthcare reduces medical costs for poor families at the same GDP?
Answer and explanation
Correct answer: Because access to an essential service and real disposable income improve
Public healthcare can provide an essential service directly and reduce the amount that poor households must spend privately on treatment. The money saved becomes available for food, education, housing, or other needs, so their real purchasing capacity and security improve even when measured GDP is unchanged. Option B captures both access and effective disposable income; the other options are factually impossible or conceptually wrong.
Frequently asked questions
What is the correct answer to this question?
Because access to an essential service and real disposable income improve
Why is this the correct answer?
Public healthcare can provide an essential service directly and reduce the amount that poor households must spend privately on treatment. The money saved becomes available for food, education, housing, or other needs, so their real purchasing capacity and security improve even when measured GDP is unchanged. Option B captures both access and effective disposable income; the other options are factually impossible or conceptually wrong.
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.
