GATE (Graduate Aptitude Test in Engineering) Economics: Questions 1148 - 1151 of 1256

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Passage

Read the passage carefully and answer the questions that follows

There is considerable evidence that some consumers are willing to pay more for green goods.

Green goods are goods that are manufactured in an environmentally friendly way (e. g. , wood products from sustainable forests, electricity produced from wind power) without a direct impact on a consumer. These are referred to as impure Public goods - a package of Private good and Public good.

Why consumers are willing to pay more for these goods is complex. Whatever the reason, it is clear some consumers are willing to pay for green actions that do not benefit them directly.

One example of green goods is green electricity. Green power is simply electricity produced using renewable sources of energy. Of course, electricity itself is completely indistinguishable from non-green electricity. There are two ways in which consumers may buy green electricity; either by buying it directly or by contributing to the cost of building green electricity capacity.

Consumers are clearly willing to spend more for green electricity and their preference for green production is indicated by the recent rise in popularity of retail carbon offsets. Offsets of emissions have long been used by firms to buy and sell the obligation to reduce emissions. In the USA, new emitters setting up a business in an urban area have to ‘offset’ their emission additions by finding (and paying) existing firms to reduce their emissions. In recent years, firms have used offsets to effectively reduce their emissions in order to provide a green image, particularly in the case of carbon emissions.

The purchase of offsets by consumers is different when consumers buy offsets. They are making a purely voluntary contribution to the environment. Retail offsets are a way in which consumers can produce a green product from a brown product. For example, one can make his part of the flight carbon neutral by paying someone else to reduce his or her carbon emission. This is formalized in an offset market whereby sellers of offsets reduce emissions and then sell these reductions.

Question 1148 (3 of 5 Based on Passage)

Environment as a Public Good

Appeared in Year: 2020 (UGC NET)

Question

MCQ▾

Impure Public goods are (September Evening Shift)

Choices

Choice (4)Response

a.

A package of Public and Private Goods

b.

Harmful goods for the society

c.

Private goods

d.

Public goods

Question 1149 (4 of 5 Based on Passage)

Environment as a Public Good

Appeared in Year: 2020 (UGC NET)

Question

MCQ▾

Green Electricity means (September Evening Shift)

Choices

Choice (4)Response

a.

Electricity from Thermal plants

b.

Electricity from Gas-powered plants

c.

Hydro-power

d.

Electricity produced from renewable sources of energy

Question 1150 (5 of 5 Based on Passage)

Environment as a Public Good

Appeared in Year: 2020 (UGC NET)

Question

MCQ▾

An example of green good is

A. White paper

B. Wind power

C. Forest products

D. Solar energy

Choose the correct answer from the options given below:

(September Evening Shift)

Choices

Choice (4)Response

a.

B and C only

b.

C and D only

c.

B and D only

d.

A and B only

Question 1151

Appeared in Year: 2020 (UGC NET)

Question

Assertion-Reason▾

Assertion(Ꭺ)

According to Walt W. Rostow, the Principle Strategy of Development necessary for take-off was the mobilization of domestic and foreign savings (September Evening Shift)

Reason(Ꭱ)

Mobilization of domestic and foreign savings is necessary to generate sufficient investment to accelerate economic growth

Choices

Choice (4)Response

a.

Ꭺ is true but Ꭱ is false

b.

Ꭺ is false but Ꭱ is true

c.

Both Ꭺ and Ꭱ are true but Ꭱ is NOT the correct explanation of Ꭺ

d.

Both Ꭺ and Ꭱ are true and Ꭱ is the correct explanation of Ꭺ

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