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Gross Domestic Product

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The questions asked if a paper mill produces $1 million worth of paper this year but adds considerably to the pollutants in a nearby river, are the social costs arising from this pollution reflected in the gross domestic product? If so, how? Should these costs be reflected GDP? If so, why? I thought the answer would be no and that social costs are added and become the total net costs. I am not sure if the costs should be reflected in the GDP.

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The solution discusses the Gross Domestic Product.

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Gross Domestic Product (GDP) is the total value of final goods and services produced within a country's ...

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