Question 65
MediumOriginal questionMatch each case with why GDP misses part of welfare.
| List I | List II |
|---|---|
| A. A rise in GDP goes entirely to the richest 1% | I. Positive externality |
| B. A farmer is paid in grain, not money, by his neighbour | II. Negative externality |
| C. A cement plant's dust damages crops nearby | III. Non-monetary exchanges |
| D. A park built by a resident improves the neighbourhood | IV. Distribution of GDP |
Show the answer and explanation
CorrectNot quiteAnswer D
Correct answer: D
Explanation
NCERT names three limits: distribution, non-monetary exchanges and externalities (harmful or helpful).
- Concept
- GDP and welfare
- Typical timeTypical
- 90 s
- Your timeYours
- —
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