Question
Which of the following statements about GDP and Welfare
are correct? 1) GDP of a country is a indicator of welfare of the people. 2) If GDP is rising, the welfare may not rise equally. 3) GDP and Welfare both are not related each other.Solution
Option 1 and 2 both are correct. 3.GDP and Welfare both are not related each other. - This statement is incorrect. While GDP and welfare are not synonymous, they are related. Generally, a higher GDP may enable a government to spend more on public services, healthcare, and education, which can improve the general welfare. However, the relationship is not direct or guaranteed, as GDP does not measure several factors crucial to assessing welfare directly.
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