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How does green GDP improve upon ordinary GDP?

Answer and explanation

Correct answer: It adjusts for environmental damage and natural resource depletion

The governing concept is environmentally adjusted national accounting. Ordinary GDP records the market value of current final production, even when production causes pollution or depletes forests, minerals and other natural capital. Green GDP attempts to deduct or account for such environmental damage and resource depletion. Therefore option A is correct; the other options confuse the measure with population, government services or exports.

Related tags

Green GdpEnvironmental DamageNatural CapitalGdp And WelfareNational Income And Related AggregatesEconomicsClass 11 Mcq

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