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If GDP rises but people's protection against natural disasters declines how should long-term welfare be assessed?

Answer and explanation

Correct answer: By including risk and possible future losses

The governing concept is sustainable and comprehensive welfare assessment. A rise in GDP records higher current production, but declining disaster protection increases expected future losses of lives, homes, infrastructure and income. Long-term welfare must therefore consider resilience, safety, risk and the sustainability of present gains, rather than GDP alone. Options A, B and C each use only one narrow indicator and ignore future vulnerability.

Related tags

Disaster RiskResilienceLong Term WelfareGdpGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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