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What is possible if air pollution rises greatly along with production?

Answer and explanation

Correct answer: GDP may rise but welfare may fall

GDP counts the value of production, while welfare also depends on health, environmental quality and living conditions. If output increases, GDP can rise; however, severe air pollution can cause illness, medical costs and poorer quality of life. Hence option D is correct. The words “must” in the other choices are unjustified because GDP growth does not guarantee welfare growth.

Related tags

Air PollutionEnvironmental CostGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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