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What is the main difference between GDP and green GDP?

Answer and explanation

Correct answer: Green GDP adjusts for environmental damage and resource depletion

Conventional GDP measures the value of final goods and services produced, but it does not fully subtract the depletion of natural resources or environmental damage caused during production. Green GDP attempts to adjust the conventional measure by deducting such environmental costs, giving a better indication of sustainable economic performance and welfare. Therefore A is correct; B, C and D wrongly limit or deny the distinction.

Related tags

Green GdpEnvironmentResource DepletionWelfareGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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