Question
Welfare of the people of a country is best represented by which of the following parameter:
Answer: Option C
Answer: (c)
The question talks about “people of a country” which is basically residents of the country and the income coming to residents is represented by National Income rather than GDP.
As it talks about welfare, so it should be better calculated as per capita National Income rather than just National Income. And since the increase in price can increase the National Income without increasing the welfare of the people.
So, welfare can best be represented by per capita National Income at constant market prices rather than current market prices.
[Ref: Economic Survey 2017-18, Vol-II, Page 7, Per Capita Income]
Was this answer helpful ?
Answer: (c)
The question talks about “people of a country” which is basically residents of the country and the income coming to residents is represented by National Income rather than GDP.
As it talks about welfare, so it should be better calculated as per capita National Income rather than just National Income. And since the increase in price can increase the National Income without increasing the welfare of the people.
So, welfare can best be represented by per capita National Income at constant market prices rather than current market prices.
[Ref: Economic Survey 2017-18, Vol-II, Page 7, Per Capita Income]
Was this answer helpful ?
More Questions on This Topic :
Latest Videos
Latest Test Papers
Submit Solution