What is the main difference between GDP and green GDP?
Answer and explanation
Correct answer: Green GDP adjusts for environmental damage and resource depletion
Conventional GDP measures the value of final goods and services produced, but it does not fully subtract the depletion of natural resources or environmental damage caused during production. Green GDP attempts to adjust the conventional measure by deducting such environmental costs, giving a better indication of sustainable economic performance and welfare. Therefore A is correct; B, C and D wrongly limit or deny the distinction.
Frequently asked questions
What is the correct answer to this question?
Green GDP adjusts for environmental damage and resource depletion
Why is this the correct answer?
Conventional GDP measures the value of final goods and services produced, but it does not fully subtract the depletion of natural resources or environmental damage caused during production. Green GDP attempts to adjust the conventional measure by deducting such environmental costs, giving a better indication of sustainable economic performance and welfare. Therefore A is correct; B, C and D wrongly limit or deny the distinction.
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.
