A new tannery opens in town. Although the tannery brings many new jobs, it is also dumping waste into the river. What shortcoming of GDP measurement does this reflect?

Question

Quizplus · Accepted Answer

The fact that the tannery is dumping waste into the river reflects the shortcoming that environmental degradation is not counted in GDP measurement. This is because GDP only measures the market value of goods and services produced, and it does not take into account negative externalities such as pollution.

A New Tannery Opens in Town