Why may welfare differ between two societies with the same real per capita GDP?
Answer and explanation
Correct answer: Because of differences in income distribution, leisure, environment, and public services
Real per capita GDP is an average measure of inflation-adjusted production or income per person. Averages can be identical even when one society has a more equal distribution, cleaner surroundings, more leisure, safer conditions, or better public health and education. These factors affect quality of life but are not fully captured by the indicator. Thus B is correct. The measure is useful, so A is too extreme, while currency names and physical size alone do not explain the welfare difference.
Frequently asked questions
What is the correct answer to this question?
Because of differences in income distribution, leisure, environment, and public services
Why is this the correct answer?
Real per capita GDP is an average measure of inflation-adjusted production or income per person. Averages can be identical even when one society has a more equal distribution, cleaner surroundings, more leisure, safer conditions, or better public health and education. These factors affect quality of life but are not fully captured by the indicator. Thus B is correct. The measure is useful, so A is too extreme, while currency names and physical size alone do not explain the welfare difference.
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.
