Q.

An increase in per capital income is not an indication of an increase in the economic welfare of the people -

A. When such increase is the result of an increased production action of comforts
B. When such increase is the result of an increase in agricultural production
C. When it is the result of an increase in the production of industrial goods
D. When such increase is the result of increased production of intoxicants
Answer» D. When such increase is the result of increased production of intoxicants
Explanation: An increase in per capita income due to increased production of intoxicants cannot be taken as economic welfare as it defeats the very notion of welfare. Economic welfare refers to the level of prosperity and living standards of either an individual or a group of persons. Factors used to measure the economic welfare of a population, include: GDP, literacy, access to health care, and assessments of environmental quality.
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