Tag: modes and choice of transportation

Questions Related to modes and choice of transportation

Which of the following roles relate to standard of living?

  1. A greater consumption brings in better social welfare.

  2. Transport establishes links between different countries.

  3. Cheap and affordable means of transportation reduces the cost of production.

  4. Transport plays an important role in the defense of the country.


Correct Option: A
Explanation:

A greater consumption brings in better social welfare is related to standard of living. Greater consumption implies increase in aggregate demand which in turn helps to increase the income level of an economy. As a consequence the standard living rises due to greater consumption.