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A country's GDP and National Income are increasing. Higher GDP is generally taken as greater welfare of people. However this generalisation may not always be correct. Why ? Give reasons. |
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Answer» Solution :`**""`If rise in NATIONAL income is due to : PRODUCTION of more of war time goods such as explosives, guns, bombs etc or due to production of more of goods which are SOCIALLY undesirable such as opium, liquor etc, then INCREASED GDP may not be welfare oriented. `**""`If there is unequal distribution of income, economic welfare may not increase. |
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