Question

sizing up the economy using gdp — end of chapter problem in 2010, 4.9 million barrels of oil spilled off the southern coast of the united states due to an explosion on an oil rig. describe both the negative and positive impact this disaster had on u.s. gdp. explain how this example highlights the limitations of gdp. a. which statement describes the possible negative and positive impacts the oil spill had on gdp? it destroyed natural resources, which negatively impacted gdp, whereas the prices of oil increased, which positively impacted gdp. it caused environmental degradation which negatively impacted gdp, whereas the spill response and cleanup created jobs, which positively impacted gdp. it reduced the number of tourists, which negatively impacted gdp, but the spill response and cleanup created jobs, which positively impacted gdp. it reduced the number of tourists, which negatively impacted gdp; however, it also increased the cash flow in the \shadow economy,\ which positively impacted gdp.

Explanation:

The oil spill destroyed natural resources which negatively impacted GDP (e.g., hurting industries like fishing and tourism). However, the response and cleanup efforts created jobs, which positively impacted GDP. Also, increased oil - prices due to the spill could have positive cash - flow effects in some sectors. This shows that GDP only measures market transactions and does not fully account for environmental degradation or the depletion of natural resources.

Answer:

It caused environmental degradation which negatively impacted GDP, whereas the spill response and cleanup created jobs, which positively impacted GDP.