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How does green GDP differ from ordinary GDP?

Answer and explanation

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

Ordinary GDP measures the market value of final output but generally does not deduct the depletion of natural resources or the costs of environmental damage. Green GDP attempts to adjust the output measure for these costs, giving a more sustainability-oriented picture. Option A is correct. It does not restrict measurement to farming, add population mechanically, or remove market activity as suggested by B, C and D.

Related tags

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

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