Under which condition can growth in real GDP harm future welfare?
Answer and explanation
Correct answer: When output grows through temporary overexploitation of non-renewable resources
Sustainable welfare depends not only on current output but also on the productive resources available to future generations. If real GDP rises because non-renewable resources are temporarily overexploited, present production may reduce future capacity and impose scarcity or environmental costs. Option B is correct. Education and energy efficiency generally strengthen future capacity, while pollution control reduces future harm.
Frequently asked questions
What is the correct answer to this question?
When output grows through temporary overexploitation of non-renewable resources
Why is this the correct answer?
Sustainable welfare depends not only on current output but also on the productive resources available to future generations. If real GDP rises because non-renewable resources are temporarily overexploited, present production may reduce future capacity and impose scarcity or environmental costs. Option B is correct. Education and energy efficiency generally strengthen future capacity, while pollution control reduces future harm.
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.
