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 organization publishes the Human Development Index (HDI)?

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What is the term for the ability of an economy to produce more output from the same inputs?

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What is meant by “marginal propensity to consume”?

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What does “primary sector” of the economy include?

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What is the main feature of a free-market economy?

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

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What is “open market operations” (OMO)?

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What is meant by “structural unemployment”?

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What is “CRR” in banking terminology?

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What is meant by “monetary policy”?

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