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Direction: Read the below case and answer the questions that follow:
The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.
Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.
Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).
Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.
The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.
What type of externality will the increase in budget allocation create?
  • a)
    Negative
  • b)
    Positive
  • c)
    Neutral
  • d)
    Can’t be said
Correct answer is option 'B'. Can you explain this answer?
Verified Answer
Direction: Read the below case and answer the questions that follow:T...
Positive externalities refer to positive impact of an economic activity on the others without involving any price.
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Direction: Read the below case and answer the questions that follow:T...
Type of Externality: Positive

Explanation:
The increase in budgetary allocation for the environment ministry by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan will have a positive externality. The allocation of ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution will help to control pollution and provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP). The budget for pollution abatement, which remained unchanged at ₹ 10 crore will also contribute to reducing pollution. Additionally, the encouragement of states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population, will also have a positive externality towards the environment. Therefore, the increase in budgetary allocation will have a positive externality on the environment.
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Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. Can you explain this answer?
Question Description
Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. Can you explain this answer? for Commerce 2024 is part of Commerce preparation. The Question and answers have been prepared according to the Commerce exam syllabus. Information about Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. Can you explain this answer? covers all topics & solutions for Commerce 2024 Exam. Find important definitions, questions, meanings, examples, exercises and tests below for Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. Can you explain this answer?.
Solutions for Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. Can you explain this answer? in English & in Hindi are available as part of our courses for Commerce. Download more important topics, notes, lectures and mock test series for Commerce Exam by signing up for free.
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Can you explain this answer? theory, EduRev gives you an ample number of questions to practice Direction: Read the below case and answer the questions that follow:The Centre on Saturday increased the budgetary allocation for the environment ministry from last fiscal by nearly five percent for 2020-21 with no change in the amount allotted to pollution abatement and climate change action plan.Union Finance Minister, Nirmala Sitharaman, allocated ₹ 3,100 crore for the ministry out of which ₹ 460 crore were allotted to control pollution, which is the same as the money it received in the last budget.Control of pollution has been conceptualized to provide financial assistance to Pollution Control Boards/Committees and funding to National Clean Air Programme (NCAP).Similarly, budget for pollution abatement, which was cut by 50 percent last year from 2018-19, remained unchanged at ₹ 10 crore.The minister also announced that states, which are formulating and implementing plans for ensuring cleaner air in cities above one million population should be encouraged.What type of externality will the increase in budget allocation create?a)Negativeb)Positivec)Neutrald)Can’t be saidCorrect answer is option 'B'. 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