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ibps-rrb-os1 2024 · Question 220 of 270

Why might relying solely on traditional GDP as a measure of economic growth be problematic according to the passage?

Reading Comprehension

  1. ATraditional GDP overlooks technological advancements that improve sustainability and efficiency.
  2. BGDP emphasizes short-term gains, ignoring factors like population growth and urbanization.
  3. CGDP excludes environmental costs like pollution, resource depletion, and climate change.Correct
  4. DTraditional GDP suits developed nations but doesn't reflect environmental impacts in developing countries.
  5. EGDP includes environmental degradation but downplays the role of technology in growth.

Answer: C. GDP excludes environmental costs like pollution, resource depletion, and climate change.

Explanation

The correct answer is (c) GDP excludes environmental costs like pollution, resource depletion, and climate change. Explanation: The passage discusses how traditional GDP focuses on economic growth without accounting for environmental damage. It states that "many economists argue that GDP, as a metric, should evolve to account for environmental degradation and social well-being," and some propose integrating "green GDP," which would factor in the economic costs of environmental harm. This implies that traditional GDP overlooks environmental costs such as pollution and resource depletion, making it problematic when used as the sole measure of economic growth. Incorrect Options: • (a): The passage doesn't emphasize that GDP overlooks technological advancements related to sustainability and efficiency. • (b): There's no mention of GDP ignoring factors like population growth and urbanization. • (d): The passage doesn't suggest that traditional GDP only suits developed nations or excludes environmental impacts in developing countries. • (e): The passage argues that traditional GDP excludes environmental degradation rather than including it.

Source: IBPS RRB PO Mains Previous Year Paper 2024 (BankersAdda) · memory-based

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