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प्रश्न
Discuss briefly the concept of 'Externalities', with suitable example.
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उत्तर
Externalities: It refers to the positive or negative impact of an activity without any cost or penalty.
- Positive Externality: Externality is defined as having a positive impact on a third party without incurring any costs. For E.g. Construction of a flyover reduces journey time, a beautiful park in front of your house, etc.
- Negative Externality: Without his/her own fault, he/she has a negative impact on a third party. For E.g. Contaminated water from factories, Smoke emission from chimneys of factories, etc.
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संबंधित प्रश्न
Define externalities. Give an example of negative externality. What is its impact on welfare?
If the Real GDP is Rs400 and Nominal GDP is Rs450, calculate the Price Index (base = 100).
Write down some of the limitations of using GDP as an index of welfare of a country.
Answer the following question.
Gross Domestic Product (GDP) Does Not Give Us a Clear Indication of Economic Welfare of a Country. "Defend Or Refute the Given Statement with Valid Reason.
Explain how ‘Non-Monetary Exchanges’ impact the use of Gross Domestic Product as an index of economic welfare.
"Many goods and services which may contribute to welfare, but are not included in estimating Gross Domestic Product (GDP)."
Do you agree with the given statement? Give valid reason in support of your answer.
Which statement best describes the relationship between GDP and the welfare of a country?
Which of the following is a reason why GDP is not a perfect index of welfare?
Welfare depends not only on the size of GDP but also on what other factor?
What types of transactions does GDP include?
Why are domestic services performed by women at home excluded from GDP?
What is a barter exchange?
What are externalities?
Why are externalities not included in GDP?
What are positive externalities?
What is the effect of positive externalities on the measurement of welfare by GDP?
