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

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

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Which of the following is a direct tax?

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Which of the following is considered a public good?

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What is meant by “crowding out” in economics?

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

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What is “inflation targeting”?

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

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What is meant by “structural unemployment”?

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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 the meaning of “disguised unemployment”?

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