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20 June, 22:50

Suppose the government eliminates all environmental regulations and, as a result, the production of goods and services increases, but there is considerably more pollution. Based on this scenario, which of the following statements is correct?

A. GDP would definitely decrease because GDP includes a measure of environmental quality.

B. GDP could either increase or decrease because GDP includes a measure of environmental quality.

C. GDP would definitely increase because GDP does not measure environmental quality.

D. GDP could decrease, even though GDP does not explicitly measure environmental quality.

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Answers (1)
  1. 21 June, 02:09
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    The best answer is C. GDP would definitely increase because GDP does not measure environmental quality.
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