Question

Is increase in National income an indicator of economic welfare? Comment.

Answer 1

Answer:

the increase in total welfare may thereforebe less than anticipated for intance with the increase in income both the economic welfare and total welfare increase and vice versa

Answer 2

Answer:

An increase in the national income of the country implies that there is increasing availability of goods and services in the country. More goods and services mean higher level of consumption and standard of living. Therefore it is believed that economic welfare depends on national income.