Question

If GDP calculations included measurements of pollution and environmental​ damage, GDP values would most likely be

A. unchanged from their values without these measurements.
B. greater than their values without these measurements.
C. ​meaningless, since GDP values without these measurements would no longer be of value.
D. less than their values without these measurements

Answer 1

The correct answer is option D.

Step-by-step explanation:

If the measurements of GDP included environmental damage and pollution, it is most likely that the values of the GDP would be less than their values without these measurements.

This is because economic growth always involves some degree of environmental damage and pollution. We need resources from the environment for production of goods and services.

In the process of production, the environment is harmed. If the cost of these damages to the environment were to be included in GDP, the value of GDP most likely will be lower.