Gross domestic product (GDP) is the monetary value of all the finished goods and services produced in a country over a certain time period. What is a shortcoming of using GDP to evaluate the sustainability of a country's economic growth?
A. GDP does not take into account long-term environmental costs.
B. GDP does not include the sale of renewable resources.
C. GDP does not take into account the monetary costs of pollution abatement.
D. GDP does not include the sale of nonrenewable resources.
A. GDP does not take into account long-term environmental costs.
GDP measures the total output of goods and services in an economy, but it does not consider the negative impacts on the environment that may be associated with this production. For example, GDP would not reflect the depletion of natural resources, pollution, or other environmental degradation caused by economic activity. Therefore, using GDP alone to evaluate the sustainability of a country's economic growth may not provide a complete picture of the overall health and well-being of the economy and society.