A World Bank brief entitled Natural Capital Accounting contains the following statement: (A) major limitation of GDP

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A World Bank brief entitled Natural Capital Accounting contains the following statement: “(A) major limitation of GDP is the limited representation of natural capital. The full contribution of natural capital like forests, wetlands, and agricultural land does not show up.” Identify some additional examples of natural capital and explain how limited representation of these types of natural capital could affect the measurement of gross domestic product.

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Principles of Macroeconomics

ISBN: 978-0134078809

12th edition

Authors: Karl E. Case, Ray C. Fair, Sharon E. Oster

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