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Static Website V/S Dynamic Website
There are two types of URLs: Dynamic URLs and Static URLs.

When we search a database driven website a dynamic URL is displayed. Dynamic web page is basically only a template to display the result of the database query. Instead of changing information in the HTML code the data is changed in the database. Dynamic URL is generated from specific query to a site's database.

Search engines generally like to list the WebPages that are unique

In Static URLs the contents of the web page remains same unless there is change in html code.  Static URLs help the end users to understand the web page easier,
when a user sees a URL in a search engine query that matches title and description they click on the URL Than one that doesn’t make sense to them.

Static URLs are ranked better in search engine results pages, and they are indexed more quickly than dynamic URLs. Static URL doesn’t have a variable string, it looks like this.   

http://www.srihithatechnologies.com/seo.html

When we use dynamic Urls there is a risk with search engines as they don’t like them. Dynamic websites like e-commerce stores, forums, and sites utilizing content management systems and blogs or any data base driven website have most risk of losing search engine positioning due to dynamic URLs

Urls generated for the content by a dynamic websites looks like this:

http://www.andhrahospitalsinfo.com/hospitals.php?cat=Allopathy&district=
Hyderabad&city= Hyderabad&area=Ameer%20pet
http://www.andhrahospitalsinfo.com/hospitals.php?cat=Allopathy&district=
Hyderabad&city=Hyderabad&area=Banjara%20Hills

http://www.andhrahospitalsinfo.com/hospitals.php?cat=Allopathy&district=
Hyderabad&city=Hyderabad&area=Charminar

For example, let's look at below 3  URLs:

All these three URLs point three different pages, but  if  the search engine purges the information after the first offending character, the question mark (?), now all the 3 web pages look the same:

http://www.andhrahospitalsinfo.com/hospitals.php

http://www.andhrahospitalsinfo.com/hospitals.php


http://www.andhrahospitalsinfo.com/hospitals.php

so in the above case as there are no unique pages the duplicate URLs wont be indexed.
Dynamic web pages generally do not have any keywords in the Url. It is very important to have keyword rich URLs. It is good to place highly relevant keywords in the domain names or on the url pages.
Study of top 10 websites in Google, yahoo and msn have reveled that the  top 10 websites  displayed in Google results  has 40-50% of  keywords either in the url or on the domain.  Yahoo has 60% of keywords in url or in domain. Msn has 85% of keywords in the url or in the domain .
 
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