Question

Sale of private vehicles in increasing day by day. Analyse its impact on GDP and

Welfare.​

Answer 1

Answer:

Rise in sale of petrol and diesel cars implies that the private consumption expenditure will also rise. It leads to a rise in Gross Domestic Product of the country.

However, it will not lead to an increase in the welfare of the people for the following reasons:

(i) Level of pollution will rise with rise in sale of petrol and diesel cars.

(ii) The traffic congestion on the road will worsen.

(iii) The already depleted reserves of petrol and diesel will be subjected to further depletion.

Answer 2

Sale of vehicles increasing

Explanation:

IF the sale of private vehicles will increase then it implies to increase in private final consumption expenditure which is a part of GDP and as PFCE

will rise GDP will automatically rise.

on the other hand will fit will not rise because of the following points:

1) traffic jam will increase

2)pollution level in increase