In which situation would GDP growth not be considered sustainable welfare growth?
Answer and explanation
Correct answer: When growth is based on rapid depletion of non-renewable resources
Sustainable welfare requires that present production and consumption should not seriously reduce the resources and environmental conditions available to future generations. If GDP growth depends on rapid depletion of non-renewable resources, current output may rise while future productive capacity and living conditions deteriorate. Option D is correct. Better education, health, renewable-resource use, and pollution control generally support longer-term welfare, although their complete effects must still be assessed.
Frequently asked questions
What is the correct answer to this question?
When growth is based on rapid depletion of non-renewable resources
Why is this the correct answer?
Sustainable welfare requires that present production and consumption should not seriously reduce the resources and environmental conditions available to future generations. If GDP growth depends on rapid depletion of non-renewable resources, current output may rise while future productive capacity and living conditions deteriorate. Option D is correct. Better education, health, renewable-resource use, and pollution control generally support longer-term welfare, although their complete effects must still be assessed.
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.
