In the generation of GDP, pollution often occurs. So, we can infer that
A) the value of nominal GDP will always be greater than the value of real GDP.
B) the value of real GDP will always be greater than the value of nominal GDP.
C) GDP is not always a good measure of economic or social welfare.
D) the value of GDP is underestimated.

Question

Quizplus · Accepted Answer

GDP does not account for externalities like pollution and does not reflect the quality of life or well-being of a society. Therefore, GDP may not always be a good measure of economic or social welfare.

In the Generation of GDP, Pollution Often Occurs