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 measures is most effective in controlling inflation?

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What is “currency devaluation”?

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Which of the following is a characteristic of “perfect competition”?

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Which of the following is NOT a function of the World Trade Organization (WTO)?

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What is meant by “stagflation”?

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What is the term for the price at which demand and supply in a market are equal?

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

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What is the main objective of disinvestment in public sector undertakings (PSUs)?

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What is meant by “crowding out” in economics?

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Which term refers to an economy that has elements of both capitalism and socialism?

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