How does the concept of green GDP differ from ordinary GDP?
Answer and explanation
Correct answer: It attempts to adjust for environmental damage and resource depletion
Ordinary GDP totals the market value of final goods and services produced, but it does not fully deduct the depletion of natural resources or the damage caused by pollution. Green GDP is intended as an adjusted indicator that accounts for such environmental costs, making the output measure more informative about sustainability. Therefore A is correct. It is not limited to agriculture, does not simply add population, and does not remove all market transactions; the key difference is environmental adjustment.
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 totals the market value of final goods and services produced, but it does not fully deduct the depletion of natural resources or the damage caused by pollution. Green GDP is intended as an adjusted indicator that accounts for such environmental costs, making the output measure more informative about sustainability. Therefore A is correct. It is not limited to agriculture, does not simply add population, and does not remove all market transactions; the key difference is environmental 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.
