The GDP (Gross Domestic Product) measures the total value of goods and services produced. Critics note that GDP counts negatives (disaster cleanup) as positives and ignores unpaid work (childcare, volunteering). Environmental economists point out that depleting natural resources registers as economic gain, not loss. Alternative indicators like the Genuine Progress Indicator attempt to incorporate these factors, though reaching consensus on valuations remains challenging.
It can be inferred from the text that
GDP perfectly captures all aspects of societal well-being
no alternative to GDP has ever been proposed
environmental depletion is economically irrelevant
what we choose to measure and how we measure it reflects value judgments
Correct Answer: D
Choice D is the best answer. GDP's inclusion and exclusion choices are contested.
- Context clues: GDP excludes unpaid work, counts negatives as positives; alternatives make different choices.
- Meaning: Measurement isn't neutral—it embodies decisions about what matters.
- Verify: "Reaching consensus on valuations remains challenging" shows value disagreements.
💡 Strategy: When measurement choices are contested and alternatives proposed, infer that measurement involves values.
Choice A is incorrect because critics list significant exclusions and distortions. Choice B is incorrect because the Genuine Progress Indicator is specifically mentioned. Choice C is incorrect because environmental economists specifically critique GDP's treatment of resources.