Which of the following is a characteristic of the 'Doughnut Economics' framework proposed by Kate Raworth?
A. A model focused only on maximising GDP growth
B. A model concerned only with financial stability
C. An economic model that aims to meet human needs within the ecological limits of the planet
D. A model that ignores environmental boundaries
Answer: Option C
Solution (By JKSSB Mock Tests)
Doughnut economics visualises a safe and just operating space for humanity lying between a social foundation of human well-being and an ecological ceiling of planetary boundaries.
Explanation:
Moral hazard occurs when one party takes more risks because another party bears the cost, typically after a contract (e.g., insurance) is in place. Adverse selection occurs before the contract.
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