Topic Details (Notes format)

Environmental Economics and Sustainable Development

Subject: Economics

Book: Comprehensive Indian Economy

India’s rapid industrial growth strains natural resources and generates pollution. Environmental economics quantifies these externalities, urging corrective taxes or incentives. Policies like the National Action Plan on Climate Change promote solar energy, energy efficiency, and afforestation. However, balancing the needs of a developing population with ecological conservation remains challenging. Exam questions often connect resource management (forests, water) to livelihood security, especially for tribal or rural communities. Focus also on green financing, corporate social responsibility mandates, and the interplay of environmental laws with economic policies for sustainable growth.

Practice Questions

Which of the following is an example of a renewable resource?

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What is meant by “liquidity trap”?

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Which of the following is NOT part of the World Bank Group?

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What is the main function of the Reserve Bank of India (RBI)?

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Which of the following is NOT a component of Aggregate Demand?

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What does the “Phillips Curve” show?

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What is “currency devaluation”?

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What is the meaning of “disguised unemployment”?

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What is the term for goods that are used together, such as cars and fuel?

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What is the primary purpose of Special Economic Zones (SEZs)?

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