IEcoS (Economic Services) Economics Paper-2: Questions 10 - 19 of 82

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Question number: 10

» Economic Growth and Development » Theories of Economic Development

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

Discuss W. W. Rostow’s stages theory of economic development.

Explanation

Professor W. W. Rostow has sought an historical approach to the process of economic development. He refers to five stages of economic growth:

Image of the Rostows MOdel of Development

Image of the Rostow’S MOdel of Development

Image of the Rostow’s MOdel of Development

  • Traditional society: According to him, the structure of the traditional society was based on primitive technology a

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Question number: 11

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

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

Explain the role of banks and stock markets in economic growth.

Explanation

  • Role of banks: Banks play an important role in the growth of the economy. It helps the people to save their deposits and lend to the people who are in need of loans for various purposes.

    The banks perform a very significant function of credit creation in the economy. This way, it helps to circulate the money into the economy.

  • Banks promot

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Question number: 12

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

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

What is liquidity trap? Discuss the effectiveness of monetary policy and fiscal policy in this context?

Explanation

At a very low rate of interest, the liquidity preference becomes perfectly elastic and the speculative demand for money is infinitely elastic.

  • This portion of the curve indicates the position of absolute liquidity preference of the people. At a very low rate of interest, people will hold with them as inactive balances any amount of money they

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Question number: 13

» Theory of Employment, Output, Inflation, Money and Finance » Classical Theory on Money » Neutrality of Money

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

Explain the neutrality of money.

Explanation

The neutrality of money is an economic theory which states that changes in the money supply only affect nominal variables and not the real variables.

  • In other words, an increase or decrease in the money supply can change the price level but not the output of the economy.

  • According to classical theory, the nominal variables move in proport

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Question number: 14

» Economic Growth and Development » Theories of Growth » Classical Approach Adam Smith, Marx and Schumpeter

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

Explain the basic features of Kaldor’s model of growth and distribution.

Explanation

  • The Kaldor model follows the Harrodian dynamic model and Keynesian techniques of analysis. The other neo-classical economists treat the technology as exogenous but he provides a framework for relating the genesis of technical progress to capital accumulation.

  • The short-period supply of aggregate goods and services is inelastic and irrespons

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Question number: 15

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

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Appeared in Year: 2018

Essay Question▾

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Discuss Poverty-Inequality-Growth triangle in the process of sustainable economic development.

Explanation

Poverty is defined as the proportion of population living below the poverty line. Inequality refers to the disparities among the whole population in terms of income and wealth.

Growth refers to the percentage change in mean welfare of a household.

Image of the Development Strategy

Image of the Development Strategy

Image of the Development Strategy

  • The above figure shows t

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Question number: 16

» Financial and Capital Market » Financial and Capital Market » Banking and Insurance

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

Describe the elements of an optimal Insurance Contract.

Explanation

  • The Insurance contracts are used to set out the rules and regulations that state certain conditions, the guidelines that must be met, and anything that is excluded from the insurance.

    • These guidelines must be met by both parties; the insurer and insured. The insurer is essentially guaranteeing that he will pay in the case of need for set am

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Question number: 17

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

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Examine the impact of policies of liberalization, privatization and globalization on poverty and inequality.

Explanation

India embarked on big-bang economic reforms 25 years back in 1991. It is well-known that GDP growth has been much higher in the post-reform period.

  • However, GDP is only one metric. Ultimately, the success of reforms depends on whether the well-being of people, particularly that of poor, increased over time.

  • In this context, let’s examine

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Question number: 18

» Theory of Employment, Output, Inflation, Money and Finance » The Inflationary Gap » Demand Pull Versus Cost Push Inflation

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the concept of inflationary gap.

Explanation

Inflationary gap arises when consumption and investment spending together is greater than the full employment GNP level.

  • This means that people are demanding more goods and services than can be produced.

  • In other words, the amount by which the actual aggregate demand exceeds the level of national income corresponding to full employment is

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Question number: 19

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

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the speculative demand for money and its relationship with the ‘liquidity trap’.

Explanation

Speculative Demand for Money: Money is also demanded as an asset.

  • The speculative demand for money is for securing profit from knowing better than the market what the future will bring forth.

  • Money held for speculative purposes is a liquid store of value which can be invested at an opportune moment in interest bearing bonds or securities.

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