Optionals IAS Mains Economics: Questions 22 - 30 of 216

Access detailed explanations (illustrated with images and videos) to 216 questions. Access all new questions- tracking exam pattern and syllabus. View the complete topic-wise distribution of questions. Unlimited Access, Unlimited Time, on Unlimited Devices!

View Sample Explanation or View Features.

Rs. 700.00 -OR-

How to register? Already Subscribed?

Question 22

Edit

Describe in Detail

Essay▾

Explain the Harrod- Domar model and bring out the differences between the two versions.

Explanation

Harrod- Domar model was developed as a reaction to Keynes analysis in 1950s. Harrod and Domar models differ in details but basically, they are similar in substance. Both the models highlight the essential conditions for achieving and maintaining steady growth.

Image Shows Harod- Domar Model
  • Ideas of Keynesian analysis, which were incorporated in the …

… (944 more words) …

Question 23

Balanced and Unbalanced Growth
Edit

Appeared in Year: 2018 (IEcoS)

Describe in Detail

Essay▾

Why do firms wish to grow? Is there a case for small firms to continue to remain small?

Explanation

Firms seek to grow in size by increasing sales and enhancing market share. This can be achieved through

  • Internal expansion
  • external growth
  • Diversification into related industries.
Image Shows the Motives for Increasing in Size
  • The motives for increasing in size can include:
    • Increasing output enables economies of scale, greater efficiency and lower averag…

… (217 more words) …

Question 24

Price Versus Income, Income Adjustments under Fixed Exchange Rates
Edit

Describe in Detail

Essay▾

Describe the merits of flexible exchange rate system.

Explanation

  • A floating exchange rate (also called a fluctuating or flexible exchange rate) is a type of exchange rate regime in which a currency՚s value is allowed to fluctuate in response to foreign exchange market mechanisms.
  • Under a truly flexible exchange rate system, a deficit or surplus in the nation՚s balance of payments is automatically corrected by a d…

… (1095 more words) …

Question 25

Edit

Appeared in Year: 2015 (IEcoS)

Describe in Detail

Essay▾

Elucidate the statement that no economic rent is earned when the supply of a factor is perfectly elastic.

Explanation

Economic rent is the excess payment to a factor over and above the minimum amount necessary to keep a factor in its present occupation.

  • In modern economic theory, economic rent is not merely confined to land; it also refers to the surplus payments made to the units of other factors over and above what is necessary to keep them in the present industr…

… (1024 more words) …

Question 26

Edit

Appeared in Year: 2015 (IEcoS)

Describe in Detail

Essay▾

State and explain the Kaldor-Hicks compensation principle.

Explanation

  • Nicholas Kaldor was the first economist to give a welfare criterion based on compensation payments.
    • According to Kaldor՚s welfare criterion, if a certain change in economic organization or policy makes some people better off and others worse off, then that change will increase social welfare if those who gain from the change would compensate the los…

… (517 more words) …

Question 27

Edit

Appeared in Year: 2015 (IEcoS)

Describe in Detail

Essay▾

State and explain the Kaldor-Hicks compensation principle.

Explanation

  • Nicholas Kaldor was the first economist to give a welfare criterion based on compensation payments. According to Kaldor՚s welfare criterion, if a certain change in economic organization or policy makes some people better off and others worse off, then that change will increase social welfare if those who gain from the change would compensate the lo…

… (521 more words) …

Question 28

Edit

Appeared in Year: 2015 (IEcoS)

Describe in Detail

Essay▾

What is meant by excess capacity? Why is it bad? Are there any benefits of the excess capacity associated with the monopolistic competition?

Explanation

Meaning:

Theories of Chamberlin՚s monopolistic competition and Joan Robinson՚s imperfect competition have revealed that a firm under monopolistic competition or imperfect competition in long-run equilibrium produces an output, which is less than socially optimum or ideal output.

  • This means that firms operate at the point on the falling portion of lon…

… (989 more words) …

Question 29

WTO, TRIMS, TRIPS, Domestic Measures
Edit

Appeared in Year: 2018 (IEcoS)

Describe in Detail

Essay▾

How far can TRIPS encourage innovations in developing countries?

Explanation

  • Intellectual property is different from other property rights, which are designed to promote the efficient use of economic resources.
    • Patents give the guarantee exclusive rights to an innovation – a monopoly – and the profits this generates provide an incentive to innovate.
    • The rights covered by TRIPS include copyright and related rights; trademarks;…

… (203 more words) …

Question 30

WTO, TRIMS, TRIPS, Domestic Measures
Edit

Appeared in Year: 2018 (IEcoS)

Describe in Detail

Essay▾

State briefly the roles of IMF and World Bank in shaping the framework of economic development from Second World War to the present.

Explanation

  • The World Bank Group is one of the world՚s largest sources of funding and knowledge for developing countries. Its five institutions share a commitment to reduce poverty, increasing shared prosperity, and promoting sustainable development.
    • Together, International Bank for Reconstruction and Development (IBRD) and International development agency (IDA…

… (287 more words) …