IEcoS (Economic Services) Economics Paper-2: Questions 30 - 39 of 82

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Question number: 30

» Global Institutions » IMF and WTO

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the role of IMF on stabilizing the world economy.

Explanation

The IMF has played a very vital role in stabilization of economy. The IMF is an organization that seeks to promote international monetary cooperation and to facilitate the expansion of trade, and thus to contribute increased employment and improved economic conditions.

  • The system of exchange rate under the IMF combines the element of stabilit

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Question number: 31

» Financial and Capital Market » Financial and Capital Market » Financial Markets

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

When financial market is said to be perfect?

Explanation

Perfect financial markets are characterized by certain conditions:

  • Cost of trading is less and the access to such markets is free;

  • information about opportunities of borrowing and lending is freely available; and

  • There are large number of traders because of which no single trader can impact the market prices.

Question number: 32

» Economic Growth and Development » Human Development Index

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Critically discuss the concept of Human development index related to growth and welfare.

Explanation

  • Since 1990, the United Nations Development Programme (UNDP) has been publishing every year a Human Development Report.

    • The report, besides discussing various aspects of human development, has been ranking various countries according to the level of human development index. HDI is an equi-weighted average of:

    • Life Expectancy Index (LEI)

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Question number: 33

» Concept of National Income and Social Accounting » Measurement of National Income

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

Explain the value added method of national income accounting.

Explanation

In this method, instead of taking market value of final product, the value added at different stages of production is counted for estimating national income.

  • Thus, according to this method, national income is the sum total of value added by different producing units of a country in their production process.

  • Value added means the addition t

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Question number: 34

» Economic Growth and Development » Theories of Economic Development

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the main tenets of the theory of underdeve1opment as propounded by dependency school.

Explanation

  • Dependency theory evolved around 1950 as a reaction to some of the earlier theories of development.

    • Dependency theory was popular in the 1960s and 1970s as a criticism of modernization theory.

    • The main profounder of dependency theory are: Prebisch, Singer, Gunnar Myrdal, A Gander Frank and Bill Warren. Many of these scholars focused the

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Question number: 35

» Financial and Capital Market » Financial and Capital Market » Financial Markets

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Briefly discuss the merits of “Liquidity Adjustment Facility” (LAF).

Explanation

A liquidity adjustment facility (LAF) is a tool used in monetary policy that allows banks to borrow money through repurchase agreements.

  • This arrangement allows the banks to respond to liquidity pressures. It is used by governments for assuring basic stability in the financial markets.

  • It is the difference between the repo and reverse rep

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Question number: 36

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

The Physical Quality of Life Index is an instrument to measure development. Elaborate the statement.

Explanation

  • PQLI: David Morris tried to look for those indicators, which were the results of the development efforts.

    • Out of hundred and odd indicators, he could find only three which could have universal appeal as ends in themselves and meet the criteria laid down.

    • These are: Life Expectancy (LE), Infant Mortality (IM) and Basic literacy (BL). He

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Question number: 37

» Economic Growth and Development » Theories of Growth » Neo Classical Approach Robinson, Solow, Kaldor and Harrod Domar

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Analyze the Harrod-Domar Model of Growth with reference to Knife Edge Balance.

Explanation

  • Both of them developed their theories in reaction to Keynesian theory.

    • Keynes neglected twin effect of investment which means an increase in income and hence, effective demand and increase in productive capacity.

    • The classical economists emphasized productivity aspect of investment which took for granted the demand side whereas Keynes a

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Question number: 38

» International Economics » International Trade, Terms of Trade, Policy, International Trade and Economic Development

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Meaning of Exchange Rate Risk.

Explanation

Exchange rate risk, also known as currency risk, is the financial risk arising from fluctuations in the value of a base currency against a foreign currency in which a company or individual has assets or liabilities.

  • Exchange rate risk may also refers to risk which an investor faces when they need to shut down a long or short position in a for

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Question number: 39

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

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Why is the Keynesian Range referred to as the ‘Liquidity Trap’?

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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