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