How does green GDP seek to adjust conventional GDP?
Answer and explanation
Correct answer: By deducting environmental damage and natural-resource depletion costs
Green GDP is an adjusted measure intended to make output accounting more consistent with sustainable welfare. It starts from conventional GDP and attempts to subtract estimated costs of environmental degradation and depletion of natural resources, such as forests, minerals or groundwater. Option B is correct. Exports, taxes and population may matter in other calculations, but simply adding or removing them does not create a green adjustment.
Frequently asked questions
What is the correct answer to this question?
By deducting environmental damage and natural-resource depletion costs
Why is this the correct answer?
Green GDP is an adjusted measure intended to make output accounting more consistent with sustainable welfare. It starts from conventional GDP and attempts to subtract estimated costs of environmental degradation and depletion of natural resources, such as forests, minerals or groundwater. Option B is correct. Exports, taxes and population may matter in other calculations, but simply adding or removing them does not create a green adjustment.
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.
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