In: Economics
Describe a situation where you experienced a positive or negative externality or free-riding by you or someone else. Why are these situations problematic?
suppose government of a country provides grains through its public distribution schemes which provides grain at a cheaper price to the poor people.anyone having a valid identity proof can avail this service.
the main idea behind that is to promote the consumption of goods and mobilization of income and saving to investment.poor people would be be able to save more of their income and would invest it which would have positive impact on the economic activity and level of investment would increase and due to multiplier and accelerator impact the economy would witness the prosperity.