Sustainable Economic Development

11. Consider the following statements: 1. Geothermal energy can be used

Consider the following statements:

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  • 1. Geothermal energy can be used to produce electricity or its hot water can be used directly for industry, agriculture, bathing and cleaning.
  • 2. Nuclear energy is often cheaper than some other sources of electricity.
  • 3. Thermal power stations burn fossil fuels to create steam to drive the turbines.

Which of the statements given above is/are correct?

1 only
1, 2 and 3
1 and 3 only
2 and 3 only
This question was previously asked in
UPSC CAPF – 2023
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Statement 1 is correct; Geothermal energy can be harnessed to generate electricity or its heat can be directly utilized for various purposes like heating buildings, industrial processes, agriculture (greenhouses), bathing (hot springs), etc. Statement 3 is correct; Thermal power stations traditionally burn fossil fuels (coal, oil, natural gas) to heat water, produce steam, and drive turbines to generate electricity. Statement 2 is incorrect; While the operational cost of nuclear energy can be relatively low, the initial capital costs for building nuclear power plants are very high, as are costs associated with waste disposal and decommissioning. Consequently, nuclear energy is often *more expensive* in terms of Levelized Cost of Energy (LCOE) than many other sources, especially compared to mature renewable technologies or even certain fossil fuel plants depending on various factors. Stating it is “often cheaper” is a generalization that is frequently untrue.
Geothermal energy has dual uses (electricity and direct heat). Thermal power plants rely on burning fuel. Nuclear energy has high upfront and decommissioning/waste disposal costs, making it often expensive, not necessarily cheaper, compared to other sources.
The cost-effectiveness of different energy sources is a complex issue depending on location, technology, subsidies, regulatory environment, and external costs (like environmental impact). While some sources might be cheaper in certain contexts, statement 2 makes a general claim about nuclear energy that is not broadly accurate when considering full lifecycle costs.

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12. Which of the following statements about ‘Nairobi Package’ adopted in t

Which of the following statements about ‘Nairobi Package’ adopted in the Tenth Ministerial Conference of WTO is / are correct?

  • 1. No safeguard mechanism for developing country members
  • 2. Preferential rules of origin for least developed countries
  • 3. Public stockholding for food security purposes

Select the correct answer using the code given below :

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1 only
1 and 2 only
2 and 3 only
1, 2 and 3
This question was previously asked in
UPSC CAPF – 2016
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The correct answer is C, which includes statements 2 and 3.
The Nairobi Package, adopted at the 10th WTO Ministerial Conference in December 2015, included significant decisions such as the elimination of agricultural export subsidies, a package for Least Developed Countries (LDCs) including preferential rules of origin (Statement 2 is correct), and a Ministerial Decision on Public Stockholding for food security purposes (Statement 3 is correct, as the decision addressed this issue and committed to finding a permanent solution). Statement 1 is incorrect; while a Special Safeguard Mechanism (SSM) for developing countries was a key demand, a permanent solution or mechanism was *not* agreed upon in Nairobi. The statement “No safeguard mechanism… adopted” is a potentially misleading description of the outcome; the *issue* remains unresolved, not definitively rejected from future consideration, and the phrasing doesn’t accurately reflect the debate or outcome.
Other outcomes of the Nairobi conference included decisions on LDC services waiver and extension of the moratorium on non-violation and situation complaints under TRIPS.

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13. As per the Bureau of Indian Standard, the domestic water demand in Ind

As per the Bureau of Indian Standard, the domestic water demand in India in LPCD (liter per capita per day) is

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60
100
135
270
This question was previously asked in
UPSC CAPF – 2012
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The correct answer is C) 135.
As per the Bureau of Indian Standards (BIS) code IS 1172:1993 (Code of basic requirements for water supply, drainage and sanitation), the recommended minimum requirement for domestic water supply in urban areas in India is 135 Liters Per Capita Per Day (LPCD). This figure covers all domestic needs including drinking, cooking, bathing, flushing, washing of clothes and utensils.
While different standards might exist for specific contexts (e.g., basic need for drinking and cooking might be lower, or usage in high-income areas might be higher), 135 LPCD is the widely accepted standard domestic water demand figure in India according to BIS.

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14. The Economic Survey 2010 – 2011 has suggested the creation of a Nation

The Economic Survey 2010 – 2011 has suggested the creation of a National Forest Land Bank to

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settle disputes between agitating farmers and POSCO in Orissa
resolve differences between nodal ministries like Coal and Power and the Ministry of Environment
meet the UP farmers demand for higher compensation
provide relief to the farmers of Vidarbha in Maharashtra
This question was previously asked in
UPSC CAPF – 2011
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The Economic Survey 2010-2011 suggested the creation of a National Forest Land Bank primarily to resolve differences and expedite clearances for development projects between ministries like Coal and Power and the Ministry of Environment.
The Economic Survey highlighted the delays and conflicts arising from obtaining forest clearances for infrastructure and industrial projects. The proposal for a National Forest Land Bank aimed to create a pool of readily available non-forest land across different agro-ecological zones. This land could then be used for compensatory afforestation, a mandatory requirement when forest land is diverted for non-forest purposes. By having land readily available, the process of granting forest clearances could be streamlined, addressing the bottlenecks faced by development ministries and industries, thereby resolving conflicts with the Environment Ministry.
Compensatory afforestation requires planting trees on an equivalent area of non-forest land or on degraded forest land. Identifying and acquiring suitable land for this purpose was a major cause of delay. The Land Bank concept was intended as a mechanism to overcome this hurdle and facilitate faster clearances for critical projects.

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15. Which one of the following statements best describes the term ‘Green

Which one of the following statements best describes the term ‘Green Bonds’?

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They are bonds issued by governments to fund environmental projects.
They are bonds issued by corporations to fund green initiatives.
They are bonds issued to finance projects that have environmental benefits.
They are bonds issued to finance renewable energy projects only.
This question was previously asked in
UPSC CAPF – 2010
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Option C best describes the term ‘Green Bonds’.
– Green Bonds are a type of bond specifically earmarked to raise money for climate and environmental projects.
– They can be issued by various entities, including governments (sovereign, state, municipal), intergovernmental organizations, and corporations. Options A and B are partially correct by mentioning specific issuers but are not comprehensive.
– The crucial characteristic of a green bond is that the proceeds are used to finance projects with environmental benefits. These projects can include renewable energy, energy efficiency, sustainable waste management, sustainable land use, biodiversity conservation, clean transportation, sustainable water management, climate change adaptation, etc. Option D is too restrictive by limiting it only to renewable energy projects.
– Option C provides the most accurate and broad description of what a green bond is used for.
The green bond market follows guidelines developed by organizations like the International Capital Market Association (ICMA), such as the Green Bond Principles, which recommend the use of proceeds, project evaluation, management of proceeds, and reporting.

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16. Gini Coefficient or Gini Ratio can be associated with which one of the

Gini Coefficient or Gini Ratio can be associated with which one of the following measurements in an economy ?

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Rate of inflation
Poverty index
Income inequality
Personal income
This question was previously asked in
UPSC CDS-2 – 2019
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The Gini Coefficient or Gini Ratio is a statistical measure of dispersion used to represent the income or wealth distribution within a nation or a social group. It is primarily associated with measuring income inequality (C). A Gini coefficient of 0 represents perfect income equality (everyone has the same income), while a coefficient of 1 (or 100%) represents perfect inequality (one person has all the income, and everyone else has none).
The Gini coefficient quantifies the degree of income or wealth inequality on a scale from 0 to 1.
While inequality is related to poverty (B) and overall economic conditions, the Gini coefficient specifically measures the *distribution* of income/wealth, not the absolute level of poverty or personal income (D), nor the rate of inflation (A). It is often derived from the Lorenz curve, which plots the proportion of total income earned by the bottom x% of the population.

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17. Capital deepening refers to

Capital deepening refers to

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going for more fixed capital per worker
emphasis on social overhead capital
constant capital-output ratio
increasing capital-output ratio
This question was previously asked in
UPSC CDS-2 – 2016
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Capital deepening refers to going for more fixed capital per worker.
Capital deepening is an economic term that describes an increase in the amount of capital goods available per worker. This typically leads to an increase in labour productivity and is a key factor in economic growth.
Fixed capital includes machinery, equipment, buildings, and infrastructure used in production. When the ratio of this capital to the labour force increases, workers have more tools and resources at their disposal, allowing them to produce more output per hour worked. This process is distinct from capital widening, where the capital stock increases proportionally with the labour force, keeping the capital-labour ratio constant.

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