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How does the concept of green GDP differ from ordinary GDP?

Answer and explanation

Correct answer: It attempts to adjust for environmental damage and resource depletion

Ordinary GDP totals the market value of final goods and services produced, but it does not fully deduct the depletion of natural resources or the damage caused by pollution. Green GDP is intended as an adjusted indicator that accounts for such environmental costs, making the output measure more informative about sustainability. Therefore A is correct. It is not limited to agriculture, does not simply add population, and does not remove all market transactions; the key difference is environmental adjustment.

Related tags

Green GdpEnvironmental DamageResource DepletionSustainable DevelopmentGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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