What is possible if air pollution rises greatly along with production?
Answer and explanation
Correct answer: GDP may rise but welfare may fall
GDP counts the value of production, while welfare also depends on health, environmental quality and living conditions. If output increases, GDP can rise; however, severe air pollution can cause illness, medical costs and poorer quality of life. Hence option D is correct. The words “must” in the other choices are unjustified because GDP growth does not guarantee welfare growth.
Frequently asked questions
What is the correct answer to this question?
GDP may rise but welfare may fall
Why is this the correct answer?
GDP counts the value of production, while welfare also depends on health, environmental quality and living conditions. If output increases, GDP can rise; however, severe air pollution can cause illness, medical costs and poorer quality of life. Hence option D is correct. The words “must” in the other choices are unjustified because GDP growth does not guarantee welfare growth.
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.
