The diagram shows how GDP per capita and an environmental quality index have changed over time in Country X. As GDP per capita rose sharply between Year 1 a...
Question 1 Report
The diagram shows how GDP per capita and an environmental quality index have changed over time in Country X. As GDP per capita rose sharply between Year 1 and Year 20, environmental quality fell. This trade-off illustrates that
Answer Details
The correct answer is GDP per capita can overstate improvements in well-being if environmental costs are ignored.
The data shows that as GDP per capita rose between Year 1 and Year 20, the environmental quality index fell. This reveals a trade-off: economic growth generated higher incomes but at the cost of environmental degradation. GDP per capita captures the income gain but does not subtract the environmental loss. If we judge well-being by GDP alone, we overstate how much better off people actually are, because the deterioration in air quality, water purity, and natural habitats reduces quality of life.
The other options are incorrect. Environmental quality clearly affects living standards through health, recreation, and resource availability. Countries do not always have to choose between growth and protection; green technologies can achieve both. Economic growth does not always improve environmental quality; the data here shows the opposite.
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