The 'Emission Trading System' is a market-based approach to control pollution by: MCQ with Answer and Explanation

The 'Emission Trading System' is a market-based approach to control pollution by:
A. banning all emissions
B. subsidizing polluters
C. taxing all production
D. creating tradable emission permits
Answer: Option D
Solution (By JKSSB Mock Tests)
Emission trading creates a market for tradable emission allowances, limiting total emissions.

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Practice More Economy Set 1 Questions

Question #1
The concept of 'Crowding Out' is more likely to occur when:
A. Monetary policy is highly accommodative
B. The economy is in a deep recession with excess capacity
C. The economy is near full employment and interest rates rise due to government borrowing
D. There is a liquidity trap

Correct Answer: Option C


Explanation:
Crowding out is more pronounced when the economy is close to full employment, as higher government borrowing raises interest rates and reduces private investment.

This question belongs to: Economy GK Economy Set 1
Question #2
Which of the following is NOT a function of money?
A. Store of value
B. Medium of exchange
C. Unit of account
D. Means of production

Correct Answer: Option D


Explanation:
The primary functions of money are medium of exchange, measure of value (unit of account), store of value and standard of deferred payments. Means of production is not a function of money.

This question belongs to: Economy GK Economy Set 1
Question #3
The concept of 'Pareto Efficiency' implies that:
A. Resources can be reallocated to make someone better off without making anyone worse off
B. Income is equally distributed
C. No reallocation can make one person better off without making someone else worse off
D. All markets are perfectly competitive

Correct Answer: Option C


Explanation:
A Pareto efficient allocation is one where it is impossible to make any individual better off without making at least one individual worse off.

This question belongs to: Economy GK Economy Set 1