Large sport utility vehicles (SUVs) add significantly to air pollution because they do not have to meet passenger auto emission standards.The purchase of an SUV
A)adds less to GDP since the pollution costs are subtracted from GDP.
B)adds to nominal but not real GDP because of the pollution costs.
C)is a net loss to GDP because the pollution costs are so large.
D)increases GDP.

Question

Quizplus · Accepted Answer

The purchase of an SUV increases GDP because GDP measures the total market value of all final goods and services produced in a country within a given period, including vehicles, without subtracting pollution costs or other externalities.

Large Sport Utility Vehicles (SUVs) Add Significantly to Air Pollution