Measuring economic - What GDP does not Measure - Environmental Damages & Resource Depletion

8 important questions on Measuring economic - What GDP does not Measure - Environmental Damages & Resource Depletion

What does GDP measure about a country's production?

Total production but ignores environmental impacts. It provides no indication of harm or benefit.

How does the construction of a new factory affect GDP?

Jobs are created and goods are produced, leading to economic growth and GDP increase.

What negative consequence does the factory have that GDP does not show?

The factory pollutes the air and water, which GDP does not account for.
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How does GDP reflect the cleanup of pollution?

Cleanup services increase GDP, despite being a response to pollution damage.

Why is it significant that pollution damages the environment?

Pollution harms the environment, but GDP only reflects money spent, ignoring real costs.

What does GDP fail to subtract, affecting its accuracy?

The cost of pollution is not subtracted, leading to a misleading economic view.

What hidden costs does GDP not show regarding resource depletion?

Pollution and loss of natural resources have real effects GDP does not reflect.

Why is GDP not a complete representation of economic well-being?

It overlooks environmental sustainability, showing an inaccurate picture of economic health.

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