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    Question

    In the context of sustainable development, if a country

    pursues high GDP growth but ignores environmental costs (e.g., resource depletion, pollution) the resulting metric that adjusts for these is:
    A GDP at market prices Correct Answer Incorrect Answer
    B Real GDP Correct Answer Incorrect Answer
    C Green GDP Correct Answer Incorrect Answer
    D GDP deflator Correct Answer Incorrect Answer
    E GDP at factor cost Correct Answer Incorrect Answer

    Solution

    Green GDP adjusts conventional GDP for environmental degradation and resource depletion — capturing whether growth is sustainable, not just large. Real GDP and other measures don’t factor in environmental externalities. This concept is important for assessing sustainable development paths.

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