Q24 of 50 Page 1

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

The impact of the rising sale of petrol in diesel in big cities and its impact on GDP and welfare is analysed below:

● Petrol and diesel are products consumed mainly as fuel in cars.


● Cars are final products and thus, included in GDP.


● So, the GDP increases


● They provide the ease of commute but also lead to an increase in traffic jams, air and noise pollution.


● Pollution has many harmful effects on the health of the people.


● Thus, it has a negative effect on the welfare of the people.


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