Question

Sale of petrol and diesel cars is rising particularly in big cities. Analyse its impact on gross domestic product and welfare.

Answer 1

Rising sale of petrol and diesel cars leads to air pollution. This polluted air causes many diseases related to the respiratory system. It affects human health quality which has a negative impact on the welfare of the nation.

Rising sale of petrol and diesel cars means an increase in the demand for a car. So the producers will try to increase the supply of cars to balance with the increasing demand. Hence, this leads to increase in GDP.