What may generally happen when clean energy production increases?
Answer and explanation
Correct answer: Both GDP and welfare may rise
An increase in clean-energy production can raise GDP when it creates additional final goods, services, investment and employment. It may also improve welfare by reducing pollution, health damage and environmental costs. The result is not automatic in every situation, but it may occur generally, so option A is the suitable answer. The other options make absolute or unrelated claims.
Frequently asked questions
What is the correct answer to this question?
Both GDP and welfare may rise
Why is this the correct answer?
An increase in clean-energy production can raise GDP when it creates additional final goods, services, investment and employment. It may also improve welfare by reducing pollution, health damage and environmental costs. The result is not automatic in every situation, but it may occur generally, so option A is the suitable answer. The other options make absolute or unrelated claims.
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.
