Beijing is notorious for its excessive pollution. China's measure of GDP is
A) not affected by the estimated value of the pollution's harm.
B) changed by the pollution only when comparing its GDP with Australian GDP.
C) decreased by the estimated value of the pollution's harm.
D) increased by the estimated value of the pollution's harm.
E) None of the above answers is correct.

Question

Quizplus · Accepted Answer

Traditional GDP calculations do not deduct the value of environmental damage, such as pollution, from their estimates. Therefore, the harm caused by pollution in Beijing does not decrease China's GDP figure in standard economic models.

Beijing Is Notorious for Its Excessive Pollution