Some economists argue that GDP overstates overall economic welfare because it does not include the impact of bads such as pollution.

Question

Quizplus · Accepted Answer

Economists have argued that GDP does not include the negative impacts of activities like pollution and environmental degradation, which can harm overall economic welfare. Therefore, GDP may overstate economic welfare by failing to account for these negative externalities.

Some Economists Argue That GDP Overstates Overall Economic Welfare Because