If mining raises output but displaces local people what should be included in welfare assessment?

Correct answer: Social and livelihood costs of displacement

The governing concept is that welfare assessment must consider social costs and externalities, not only recorded market output. Mining may increase sales, profits and tax revenue, but displacement can destroy homes, livelihoods, community ties and access to common resources. These losses should be weighed against the production gains. Thus option D is correct; the other choices consider only selected monetary benefits.