Why is it inappropriate to rely only on current GDP when natural resources are being depleted rapidly?

Correct answer: Because current production may damage future capacity

GDP is a flow measure of current production, whereas natural resources such as forests, soil, minerals, and groundwater are part of the productive asset base. Extracting them may raise present output while reducing the economy’s future capacity and imposing environmental costs. Sustainable welfare therefore requires considering resource stocks, depletion, regeneration, and long-term effects, not GDP alone. Option C expresses this intergenerational limitation.