Passage: [Reference to GDP text above]
Which proposed reform would most directly address the author's critique of conventional economic metrics?
Answer and explanation
Correct answer: B. Adopting an adjusted national accounting system that incorporates natural capital depreciation and ecosystem services
- Step 1: Analyze the core defect identified in the passage: the failure to record natural capital degradation alongside financial metrics.
- Step 2: An effective remedy must directly measure and deduct environmental depletion and ecosystem degradation.
- Step 3: Therefore, adopting an adjusted national accounting system that incorporates natural capital accounting most directly addresses this flaw.
Answer
Adopting an adjusted national accounting system that incorporates natural capital depreciation and ecosystem services.
Why not the others: Replacing progressive income tax with a flat sales tax is a fiscal tax-structure proposal that does not modify natural resource accounting; eliminating trade tariffs on timber accelerates environmental exploitation rather than measuring it; doubling interest rates during logging is an unworkable monetary intervention that fails to reform national accounting metrics.
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