Match List I with List II

Choose the correct answer from the options given below :

A-IV, B-I, C-II, D-III

The correct answer is option (2) : A-IV, B-I, C-II, D-III

A. Externalities (IV. Pollution by a Refinery):,-Externalities refer to the unintended side effects or consequences of an economic activity, often in the form of pollution Pollution by a refinery is a classic example of an externality where the negative impact of the refinery's operations affects the environment and people living nearby.

B. Non-Monetary Exchanges (I. Kitchen Gardening):Non-monetary exchanges typically involve activities that are not directly associated with financial transactions. Kitchen gardening, where individuals grow their own vegetables at home, is an example of a non-monetary exchange as it involves the production of goods for personal use without a monetary exchange.

C. Depreciation (II. Normal Wear & Tear):- Depreciation is the reduction in the value of assets over time due to wear and tear, obsolescence, or other factors. It is skin to the concept of "normal wear and tear" where assets naturally deteriorate in value.

D. Taxes (III. Leakages): Taxes can be considered a form of economic leakage because they represent a portion of income or wealth that is diverted from the economic system to the government. Taxes are one of the ways money "leaks" out of the economic cycle.