Suppose a ban is imposed on consumption of liquor in the country. Examine its effects on (a) gross domestic product and (b) welfare.

Class 12 Economics in Class 12 3 years ago

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SOLUTION :Following are the effectsofban on consumption ofliquor in the country1. Gross domestic product :If a ban is imposed on the consumption of liquor , gross domestic product will will be adversely affected ATLEASTIN short run . Alcohol industryis one of the BIGGEST industries. It would result in problem of unemployment and decline in tourism . The sale of liquor contributes to the economy through tax to the government2. Welfare-It a ban is imposed on consumption of liquor , welfare of the countrywould improve . A number of social PROBLEMS originate from the consumption pf liquor , there would be a decline in number of accidents ,RAPES and murders

Posted on 11 Dec 2021, this text provides information on Class 12 related to Economics in Class 12. Please note that while accuracy is prioritized, the data presented might not be entirely correct or up-to-date. This information is offered for general knowledge and informational purposes only, and should not be considered as a substitute for professional advice.

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