IEcoS (Economic Services) Economics Paper-1: Questions 67 - 71 of 85

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Question number: 67

» Quantitative Methods in Economics » Mathematical Methods in Economics » Linear Algebra and Linear Programming and Input-Output Model

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

State the Hawkins-Simon condition and explain its economic meaning and significance.

Explanation

  • Input-output is a novel technique invented by Professor Wassily W. Leontief in 1951.

    It is used to analyse inter-industry relationship in order to understand the inter-dependencies and complexities of the economy and thus the conditions for maintaining equilibrium between supply and demand.

  • Hawkins-Simon conditions:

    Our basic equation is X = (I−A) -1F

… (511 more words) …

Question number: 68

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Distinguish between laws of variable proportions and laws of returns to scale.

Explanation

  • Major Differences between Returns to Scale and Returns to a factor Proportions are listed below:

  • Returns to a factor:

    • Only one factor varies while all the rest are fixed.

    • The factor-proportion varies as more and more of the units of the variable factor are employed to increase output.

    • Returns to a factor or to variable proportions end up in negative re

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Question number: 69

» Quantitative Methods in Economics » Mathematical Methods in Economics » Linear Algebra and Linear Programming and Input-Output Model

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Consider the Leontief static input-output model along with its assumptions. How can you confirm that the model is either open or closed? State the fundamental objective of Leontief static open input-output model.

Explanation

  • Input-output is a novel technique invented by Professor Wassily W. Leontief in 1951.

    It is used to analyze inter-industry relationship in order to understand the inter-dependencies and complexities of the economy and thus the conditions for maintaining equilibrium between supply and demand.

  • Static Input Output model

    • The input-output model relates to t

… (349 more words) …

Question number: 70

» Theory of Production » Laws of Return, Returns to Scale and Return to Factors of Production

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Appeared in Year: 2014

Essay Question▾

Describe in Detail

Consider the production function

(a) What is the name of this type of production function?

(b) What is the elasticity of substitution for this production function?

(c) Does this production function exhibit increasing, decreasing, or constant returns to scale?

(d) Suppose that the production function took the form . Does this production function exhibit increasing, decreasing or constant returns to scale?

Explanation

CES production function has a form where the function is expressed as . In the above Production function,

.

a) This type of production function is CES (constant elasticity of substitution) production function.

b) The elasticity of substitution

… (62 more words) …

Question number: 71

» Welfare Economics » Social Choice, Game Theory and More

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

Distinguish between a cooperative and a non-cooperative game.

Explanation

A game is cooperative if the firm (i. e. players in the game) can arrive at an enforceable or binding contract that permits them to adopt a strategy to maximize joint profits. Suppose making of a carpet costs Rs. 1000 but the buyers value it at Rs. 2000. Fixation of price between Rs. 1000 and 2000 per carpet will yield profits.

  • In this case, two fir

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