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.
Frequently asked questions
What is the correct answer to this question?
It attempts to adjust for environmental damage and resource depletion
Why is this the correct answer?
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.
Which subject and chapter does this question cover?
This is a Class 11 Economics question. Chapter: National Income and Related Aggregates. Topic: GDP and Welfare.
