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.
Frequently asked questions
What is the correct answer to this question?
It adjusts for environmental damage and natural resource depletion
Why is this the correct answer?
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.
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.
