If child labour is used to increase production which statement about GDP and welfare is correct?

Correct answer: GDP may rise but social welfare may fall

If child labour produces additional market output, the recorded value of that output may increase GDP. However, GDP does not fully subtract the social costs of lost schooling, impaired health, exploitation, and violation of children’s rights. These costs can reduce present and future welfare even when measured production rises. Therefore option D is correct. Option A wrongly assumes that GDP and welfare always move together, while B and C contradict the likely accounting and welfare effects.