In which situation may the welfare of future generations fall even when GDP rises?
Answer and explanation
Correct answer: Through excessive exploitation of natural resources
The governing concept is that GDP measures the market value of current production, not whether development is sustainable. Excessive extraction of forests, minerals, water, or fossil fuels can raise present output, yet deplete resources and damage environmental quality available to future generations. Therefore option B is correct. Renewable energy, education investment, and forest conservation generally strengthen long-term productive capacity and welfare, although their effects still depend on implementation.
Frequently asked questions
What is the correct answer to this question?
Through excessive exploitation of natural resources
Why is this the correct answer?
The governing concept is that GDP measures the market value of current production, not whether development is sustainable. Excessive extraction of forests, minerals, water, or fossil fuels can raise present output, yet deplete resources and damage environmental quality available to future generations. Therefore option B is correct. Renewable energy, education investment, and forest conservation generally strengthen long-term productive capacity and welfare, although their effects still depend on implementation.
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.
