When can we assume that increases in real GDP per capita from year to year are also increases in the economic welfare of a country?

Question

Quizplus · Accepted Answer

Increases in real GDP per capita indicate a growth in the economy, but this does not necessarily mean that overall economic welfare has increased. Factors such as environmental conditions, quality of products and services, and leisure time should also be considered. If these factors remain unchanged, then the increase in real GDP per capita can be assumed to reflect an increase in economic welfare. However, if they are not taken into account or they deteriorate, then the relationship between real GDP per capita and economic welfare may not be straightforward. Option B states that quality of products and services, leisure time and environmental conditions all do not change, which leads to an increase in economic welfare.

When Can We Assume That Increases in Real GDP Per