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How can excessive exploitation of natural resources affect welfare?

Answer and explanation

Correct answer: It may raise current production while reducing future welfare

The governing concept is sustainable welfare across time. Excessive extraction may provide raw materials and increase current production, but it can deplete reserves, damage ecosystems, and reduce resources available to future generations. Thus option D gives the balanced effect. The words “always,” “no effect,” and “only” make options A, B, and C too absolute and incomplete.

Related tags

Natural ResourcesFuture WelfareSustainable DevelopmentGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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