Question

Identify the correctly matched items in Column A to that of Column B:

Column A	Column B
1. Welfare of the people	(a) Social Welfare
2. Total of economic and non-economic welfare	(b) Economic  Welfare
3. Benefits or harms of an activity caused by a firm.	(c) Externalities
4. Material well being of the people	(d) Real GDP

Options

• 1 - (a)

• 2 - (b)

• 3 - (c)

• 4 - (d)

Answer 1

3 - (c)

Explanation:

Externalities are the good and negative effects of one economic activity on another that occur without a cost or penalty.