Indian Economy·MCQ Practice

Environmental Economics — MCQ Practice

Updated 19 Oct 2026

Interactive MCQ Practice

Test your knowledge. Click “Solve” to reveal options, select your answer, then check the result. 5 questions available.

Q1medium

A factory’s extra unit of output imposes ₹50 of uncompensated harm on downstream users. Under the simple corrective-tax benchmark, which cost is missing from the factory’s private calculation?

Q2medium

Two tonnes of an equally harmful pollutant must be abated. A’s first and second tonnes cost ₹100 and ₹150; B’s first costs ₹300. With no location effects, which allocation has the lowest stated cost?

Q3medium

Under a basic comparison without additional price controls, how do an emissions tax and a cap-and-trade system differ?

Q4medium

Why is a freely accessible fish stock not a pure public good in the standard economic classification?

Q5medium

A proposal relies on private bargaining to resolve pollution affecting thousands of dispersed households. Which assessment is most appropriate?