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 considered a public good?

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What is the primary function of the International Monetary Fund (IMF)?

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

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Which of the following sectors contributes the most to India’s GDP?

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Which of the following is NOT an example of a direct tax?

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What is the meaning of “supply-side economics”?

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Which of the following best describes “capital formation”?

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What does “primary sector” of the economy include?

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What is the “law of diminishing marginal utility”?

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What does the “Phillips Curve” show?

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