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Excessive exploitation of natural resources may raise current GDP. What may be its effect on future welfare?

Answer and explanation

Correct answer: Future welfare may decline

The governing idea is sustainable development: present production should not destroy the resource base needed by future generations. Excessive extraction can deplete forests, minerals and water, reduce future productive capacity, and create pollution or ecological damage. These costs may not be fully reflected in current GDP, so future welfare can fall. Option D is correct; the words “may decline” appropriately allow for uncertainty and possible conservation responses.

Related tags

Natural ResourcesSustainabilityFuture WelfareGdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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