Optionals IAS Mains Economics: Questions 59 - 68 of 199

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Question 59

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Appeared in Year: 2010

Describe in Detail

Essay▾

Write a short note on Green GDP.

Explanation

Green GDP is a term used generally for expressing GDP after adjusting for environmental damage.

  • The System of National Accounts (SNA) is an accounting framework for measuring the economic activities of production, consumption and accumulation of wealth in an economy during a period of time.
  • When information on economy’s use of the natural environment

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Question 60

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Appeared in Year: 2011

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Essay▾

Write a short note on tradable permits.

Explanation

Tradable permits are instruments aimed at reducing pollution. A maximum permissible emission rate is determined by government and permits that allow for the production of a maximum emission are issued to industry players.

Why Introduced?

Trading emissions permits was suggested by the European Union in 2002 as one of the main regulatory instruments fo

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Question 61

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Appeared in Year: 2011

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Essay▾

What are the requirements for a good tax structure? Discuss how far the Benefit Tax principle fits with these criteria.

Explanation

  • The requirements of a good tax structure as follows:
    • Revenue yield should be adequate.
    • The distribution of the tax burden should be equitable. Everyone should be made up to pay his or her fair share.
    • What matters in this context is not only the impact point at which the tax is imposed but its final resting place. The problem of incidence is thus allow

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Question 62

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Appeared in Year: 2011

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Essay▾

Explain the growth theory of a firm given by Robin Morris.

Explanation

  • According to Robin Morris, managers strive to maximize the balanced growth rate of an organization subject to managerial and financial constraints. Morris translates the two growth rates in to two utility functions, which are as follows:
    • Manager’s utility functions (salary, power, job security, prestige and status)
    • Owner’s utility function (output,

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Question 63

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Appeared in Year: 2010

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Explain the methodology of Integrated Environmental and Economic Accounting.

Explanation

  • The Central Framework covers measurement in three main areas:
    • Environmental flows. The flows of natural inputs, products and residuals between the environment and the economy, and within the economy, both in physical and monetary terms.
    • Stocks of environmental assets. The stocks of individual assets, such as water or energy assets, and how they chang

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Question 64

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Appeared in Year: 2010

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Essay▾

Write a short note on Negative externalities.

Explanation

A negative externality is a cost that is suffered by a third party as a result of an economic transaction.

  • In a transaction, the producer and consumer are the first and second parties, and third parties include any individual, organization, property owner, or resource that is indirectly affected.
  • Externalities are also referred to as spill over effec

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Question 65

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Appeared in Year: 2011

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Essay▾

Write a short note on Laffer curve.

Explanation

Laffer curve is an illustration of the thesis that there exists some optimal tax rate which maximizes government tax revenues.

  • The thesis may be expressed in terms of personal or corporate taxes and it proposes that taxes above the optimal rate discourage production and hence result in lower revenues.
  • In other words, if higher income taxes cause disi

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Question 66

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Appeared in Year: 2010

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Essay▾

Write a short note on economies of scale.

Explanation

Economies of scale are cost advantages reaped by companies when production becomes efficient.

  • Companies can achieve economies of scale by increasing production and lowering costs. This happens because costs are spread over a larger number of goods.
  • Economies of scale are the competitive advantage that large entities have over smaller ones. The larger

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Question 67

Changing Role of Markets and Planning
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Appeared in Year: 2011

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Essay▾

Write a short note on Hedonic prices and values.

Explanation

  • Hedonic pricing is a model, which identifies price factors, according to the premise that price is determined both by internal characteristics of the good being sold and external factors affecting it.
    • A hedonic pricing model is often used to estimate quantitative values for environmental or ecosystem services that directly impact market prices for h

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Question 68

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Appeared in Year: 2011

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Essay▾

Explain salient differences between the Conventional National Accounting System and the Integrated Environmental and Economic Accounting System.

Explanation

  • The Integrated Environmental and Economic Accounting adopt slightly different terminology in relation to environmental assets compared to the Conventional National Accounting System.
    • In the Conventional National Accounting System, the term “Natural Resources” is used to cover natural biological resources (e. g. timber and aquatic resources), mineral

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