Why may welfare differ among societies with the same real per capita GDP?
Answer and explanation
Correct answer: Because of differences in income distribution, environment, leisure and public services
Real per capita GDP is an average measure of inflation-adjusted output per person, but it does not show how income is distributed or fully capture quality of life. Two societies with the same average can differ in pollution, leisure, health and education services, and inequality. Option B is correct; A, C and D give either false or incomplete explanations.
Frequently asked questions
What is the correct answer to this question?
Because of differences in income distribution, environment, leisure and public services
Why is this the correct answer?
Real per capita GDP is an average measure of inflation-adjusted output per person, but it does not show how income is distributed or fully capture quality of life. Two societies with the same average can differ in pollution, leisure, health and education services, and inequality. Option B is correct; A, C and D give either false or incomplete explanations.
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.
