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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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