IEcoS (Economic Services) Economics Paper-2: Questions 1 - 8 of 82

Access detailed explanations (illustrated with images and videos) to 82 questions. Access all new questions- tracking exam pattern and syllabus changes. View the complete topic-wise distribution of questions. Unlimited Access for Unlimited Time!

View Sample Explanation or View Features.

Rs. 300.00 or

How to register?

Question number: 1

» Theory of Employment, Output, Inflation, Money and Finance » The Classical Theory of Employment and Output and Neo Classical Approaches

Edit
Essay Question▾

Describe in Detail

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

Image Shows Harod- Domar Model

  • Ideas of Keynesian analysis, which were incorporated in the

… (1112 more words) …

Question number: 2

» Economic Growth and Development » Concepts of Economic Growth and Development and Their Measurement

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

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

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

… (218 more words) …

Question number: 3

» Balance of Payments » Exchange Rates

Edit
Essay Question▾

Describe in Detail

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

… (1096 more words) …

Question number: 4

» Global Institutions » IMF and WTO

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

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;

… (204 more words) …

Question number: 5

» Global Institutions » IMF and WTO

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

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

… (289 more words) …

Question number: 6

» Balance of Payments » Mechanism of Adjustments

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

With respect to devaluation, explain the J curve effect.

Explanation

Devaluation leads to worsening of the balance of trade and payments initially but subsequently it may result in the improvement in the balance of trade and payments’

The J-curve depicts the worsening of balance of payments deficit in the short run and improvement of it in the long run due to devaluation. The J-curve has been shown in the figure belo

… (218 more words) …

Question number: 7

» Theory of Employment, Output, Inflation, Money and Finance » Keynesian Theory of Employment and Output

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

What are similarities and difference between the Keynesian and Monetarist models?

Explanation

Image of the Keynesian view and Monetarist view

Image of the Keynesian View and Monetarist View

  • Keynesian models emphasize the role of fiscal policy in stabilizing the economy. In particular Keynesian theory suggests that higher government spending in a recession can help enable a quick economic recovery.

    • Keynesians say it is a mistake to wait for markets to clear. Monetarists emphasized the impor

… (265 more words) …

Question number: 8

» Economic Growth and Development » Human Development Index

Edit

Appeared in Year: 2018

Essay Question▾

Describe in Detail

Discuss the importance of inequality adjusted human development index (IHDI) and gender inequality index (GII) in connection with the status of overall HDI.

Explanation

  • The Human Development Index (HDI) measures the average achievements in a country in three basic dimensions of human development: a long and healthy life, access to knowledge and a decent standard of living.

  • The Inequality-adjusted Human Development Index (IHDI) adjusts the Human Development Index (HDI) for inequality in distribution of each dimensio

… (216 more words) …

Developed by: