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An industrial project raises output but displaces a local community. How should welfare be assessed?

Answer and explanation

Correct answer: उत्पादन लाभ और विस्थापन की सामाजिक लागत दोनों देखकर

GDP captures the value of additional market production, but it is not a complete social welfare account. A welfare assessment should compare the project’s output and income gains with displacement, lost livelihoods, disruption, and other social costs. Hence option D is correct. Option A counts only the benefit, B counts only one financial cost, and C wrongly ignores a major consequence.

Related tags

Industrial ProjectDisplacementSocial CostGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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