Why may the loss of green areas not appear directly in GDP?
Answer and explanation
Correct answer: Because the full monetary value of environmental loss is generally not recorded
GDP records the market value of current production, not every change in natural capital or environmental quality. When green areas are destroyed, the lost benefits—clean air, biodiversity, recreation and protection from heat—usually lack complete market prices, so the damage may not appear directly. Option D is correct; A, B and C are factually or conceptually wrong.
Frequently asked questions
What is the correct answer to this question?
Because the full monetary value of environmental loss is generally not recorded
Why is this the correct answer?
GDP records the market value of current production, not every change in natural capital or environmental quality. When green areas are destroyed, the lost benefits—clean air, biodiversity, recreation and protection from heat—usually lack complete market prices, so the damage may not appear directly. Option D is correct; A, B and C are factually or conceptually wrong.
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.
