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.
Show answer & explanation
Correct answer: B
Explanation
The correct answer is Option 2 i.e, Only 2.
- GDP of a country is an indicator of welfare of the people: This statement is incorrect. GDP (Gross Domestic Product) measures the total economic output of a country but does not directly measure the welfare or well-being of its people.
- If GDP is rising, the welfare may not rise equally.: This statement is correct. Economic growth, as measured by GDP, does not necessarily translate into improved welfare for all segments of society.
- GDP and Welfare both are not related to each other.: This statement is incorrect. While GDP and welfare are not directly synonymous, there is a relationship between them. GDP can be a useful proxy for measuring certain aspects of welfare, such as material living standards and access to goods and services.
- Hence, only 2 is correct.