Registered Environmental Manager (REM) Practice Exam

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Which of the following best describes the objective of the Genuine Progress Indicator (GPI)?

To measure only economic growth
To account for environmental and social aspects of welfare
To establish a financial budget for a nation
To compare nations based solely on GDP

The correct answer is: To account for environmental and social aspects of welfare

The Genuine Progress Indicator (GPI) is designed to provide a more comprehensive measure of progress than traditional economic indicators like GDP. Its primary objective is to account for not just economic growth but also environmental and social aspects that contribute to overall welfare and quality of life. GPI incorporates factors such as income distribution, volunteer work, and the value of environmental health, which are often overlooked in conventional metrics. By considering these additional elements, GPI aims to provide a fuller picture of how well a society is doing in terms of well-being and sustainability, rather than just economic performance. This holistic approach reflects a deeper understanding of progress that encompasses environmental integrity and social equity.