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If a country's GDP growth mainly comes from rapid exploitation of natural resources, what concern arises?

Answer and explanation

Correct answer: Future productive capacity and welfare may decline

The governing concept is sustainable development: GDP measures marketed output, but it does not by itself guarantee lasting welfare or protect the resource base. Rapid extraction may raise current GDP while depleting resources, damaging ecosystems, and reducing future productive capacity. Hence option A is correct. Availability need not increase, welfare is not certain, and GDP growth does not automatically equalize income.

Related tags

Gdp And WelfareResource DepletionSustainable DevelopmentFuture WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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