What is meant by economic welfare? Explain how GDP is an indicator of

1.	What is meant by economic welfare? Explain how GDP is an indicator of economic welfare.
Answer» Eeconomic welfare The level of prosperity an equality of living standards in an economy. It can be measured through a variety of factors such as GDP and other indicators which reflect the welfare of populations. Such as literacy, level of pollution etc. If the GDP of a country increases, welfare of the people of that country also increase since increase in GDP implies increase in per capita real income, i.e., increase in per capita availability of goods and services. Thus, higher level of GDP of a country may be treated as an index of economic welfare. However, this does not always happen. There are certain reason or limitations why GDP cannot always be taken as a perfect index of economic welfare.

What is meant by economic welfare? Explain how GDP is an indicator of economic welfare.

Answer»

Eeconomic welfare

The level of prosperity an equality of living standards in an economy. It can be measured through a variety of factors such as GDP and other indicators which reflect the welfare of populations. Such as literacy, level of pollution etc.

If the GDP of a country increases, welfare of the people of that country also increase since increase in GDP implies increase in per capita real income, i.e., increase in per capita availability of goods and services. Thus, higher level of GDP of a country may be treated as an index of economic welfare. However, this does not always happen. There are certain reason or limitations why GDP cannot always be taken as a perfect index of economic welfare.

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