Identify the correct statements about the externalities as a limitation of GDP and welfare. A. GDP as measured does not include external production of goods. B. Inverse relationship between negative externality and welfare. C. No relation between GDP and welfare. D. Economic activities have both positive and negative externalities. E. Producers are rewarded with profit for positive externalities Choose the correct answer from the options given below :

Question

Option 1: A and D only

Option 2: B and E only

Option 3: D and E only

Option 4: B and D only

AfterBoards · Accepted Answer

The answer is 'B and D only'. View full solution:

List-I	List-II
(A) Real GDP	(I) Commodities traded in bulk.
(B) Nominal GDP	(II) GDP evaluated at constant prices.
(C) Consumer Price Index	(III) Commodities bought by representative consumers.
(D) Wholesale Price Index	(IV) GDP evaluated at current market prices.

CUET Economics PYQs

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