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      Question

      Which of the following adjustments is made to convert

      traditional GDP into 'Green GDP'?
      A Adding the value of leisure time. Correct Answer Incorrect Answer
      B Subtracting the cost of natural resource depletion and environmental degradation. Correct Answer Incorrect Answer
      C Adding the total expenditure on renewable energy subsidies. Correct Answer Incorrect Answer
      D Subtracting the value of imported fossil fuels. Correct Answer Incorrect Answer

      Solution

      Traditional GDP measures the total value of goods and services produced in an economy, but it does not account for environmental costs incurred during production. This leads to an overestimation of true economic welfare. Green GDP refines this measure by incorporating environmental sustainability. It adjusts GDP by: • Subtracting the monetary value of natural resource depletion (e.g., deforestation, loss of minerals, groundwater extraction), and • Subtracting the costs of environmental degradation (e.g., air and water pollution, soil erosion, climate damage).

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