Which limitation of GDP is shown when production that pollutes a river increases?

Correct answer: It does not fully reflect environmental damage

GDP measures the value of market production, but it does not automatically subtract every social and environmental cost created by that production. If a factory increases output while polluting a river, the sale of its products can raise GDP, whereas damage to health, ecosystems, and water quality may be omitted or inadequately valued. Thus option D identifies the relevant limitation; the other choices do not describe this case.