Related to the Economics in Practice on p. 437: If the effects of pollution on society as a measure of welfare were included in GDP calculations, the measured level of GDP would most likely
A) increase.
B) decrease.
C) not change.
D) become negative.

Question

Quizplus · Accepted Answer

When the effects of pollution on society as a measure of welfare were included in GDP calculations, the measured level of GDP would most likely decrease. This is because pollution has negative externalities that reduce social welfare, and therefore, including the cost of pollution in GDP calculations would reduce overall economic activity and measured GDP.

Related to the Economics in Practice on P