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If carbon emissions rise sharply along with GDP, what is the main concern for long-term welfare?

Answer and explanation

Correct answer: Climate and environmental damage

GDP records the value of current production, but it does not automatically subtract all environmental damage caused by that production. Rising carbon emissions can increase climate risks, pollution and health costs, potentially reducing long-term welfare. Thus, option D is correct.

Related tags

Carbon EmissionsClimate ChangeEnvironmental DamageLong-Term WelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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