Question

Because pollution is a byproduct of many production processes, gdp accountants should adjust gdp _______ but do not, causing gdp to ________ economic welfare.The blanks are best filled with

Answer 1

Answer:

$\mathbf\red{Downwards\:Overstate}$

$\huge\mathbb\blue{Marked\: Brainly}$

Answer 2

Because pollution is a byproduct of many production processes, gdp accountants should adjust gdp downward but do not, causing gdp to overstate economic welfare.

1. World bank published in one of its recent report that air polloution alone was 6.1 %of the global GDP. It also stated that 95% of deaths in low and middle income economies ocurred due to air pollution.
2. Therefore, externalities of production i.e. pollution must be accounted for in GDP.