GDP increased in an economy but the share of clean energy fell. What is the main concern for long-term welfare?
Answer and explanation
Correct answer: Pollution and environmental damage may increase
The governing concept is sustainable development: an increase in current output does not guarantee an increase in long-term welfare. If clean energy loses share, production may rely more on polluting fuels, creating health costs, environmental damage and future resource risks. Therefore option B is correct. The other options do not logically follow from the energy composition of GDP.
Frequently asked questions
What is the correct answer to this question?
Pollution and environmental damage may increase
Why is this the correct answer?
The governing concept is sustainable development: an increase in current output does not guarantee an increase in long-term welfare. If clean energy loses share, production may rely more on polluting fuels, creating health costs, environmental damage and future resource risks. Therefore option B is correct. The other options do not logically follow from the energy composition of GDP.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
