The concept of 'Stranded Assets' in the energy transition refers to: MCQ with Answer and Explanation

The concept of 'Stranded Assets' in the energy transition refers to:
A. Only financial assets unrelated to the real economy
B. Only fully depreciated assets
C. Assets that suffer unanticipated write-downs or devaluations because of climate-related risks and the shift to a low-carbon economy
D. Only newly created green assets
Answer: Option C
Solution (By JKSSB Mock Tests)
Stranded assets are those that lose economic value prematurely as a result of changes associated with the energy transition, such as policy shifts, technological change or shifts in demand away from fossil fuels.

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Practice More Economy Set 1 Questions

Question #1
The 'GST' is a value-added tax because:
A. it is levied on turnover
B. it is collected at source
C. input tax credit is available
D. it is a direct tax

Correct Answer: Option C


Explanation:
GST is a value-added tax because input tax credit avoids cascading.

This question belongs to: Economy GK Economy Set 1
Question #2
Price elasticity of demand is measured as:
A. percentage change in price divided by percentage change in quantity demanded
B. change in quantity divided by change in price
C. change in price divided by change in quantity
D. percentage change in quantity demanded divided by percentage change in price

Correct Answer: Option D


Explanation:
Price elasticity of demand is the percentage change in quantity demanded divided by the percentage change in price.

This question belongs to: Economy GK Economy Set 1
Question #3
The 'Fiscal Responsibility and Budget Management Act' initially aimed to reduce fiscal deficit to what percentage of GDP by 2008-09?
A. 5%
B. 3%
C. 2%
D. 6%

Correct Answer: Option B


Explanation:
The FRBM Act initially aimed to reduce fiscal deficit to 3% of GDP by 2008-09.

This question belongs to: Economy GK Economy Set 1