If India decides to enact environmental laws to reduce air pollution, what would be the effect on GDP?
A) GDP would decrease if the pollution controls reduce productivity by more than the cost of the controls.
B) GDP would increase as the environmental costs of pollution were not included in the calculation of GDP.
C) GDP would increase as the citizens of India were made happier as the air pollution was reduced.
D) GDP would increase reflecting the fact that the air would be cleaner.
A
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The largest percentage of banks' holdings of securities consist of
A) Treasury and government agency securities. B) tax-exempt municipal securities. C) state and local government securities. D) corporate securities.
An increase in the money supply, other things being constant
A) causes interest rates to rise. B) generates an increase in the demand for money. C) causes the price level to increase. D) causes the purchasing power of money to increase.