IEcoS (Economic Services) Economics Paper-2: Questions 50 - 59 of 82

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Question number: 50

» 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

Explain Net Barter Terms of Trade. What are the limitations of this theory?

Explanation

  • The concept of net barter terms of trade was introduced by F. W. Taussig. This concept was called as commodity terms of trade by Jacob Viner.

    It is defined as ratio of export prices to import prices. It can be expressed as:

    • Here = commodity terms of trade or net barter terms of trade,

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Question number: 51

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

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

What is GDP deflator? How is it used to measure inflation?

Explanation

The GDP deflator is the ratio of the value of goods and services an economy produces in a particular year at current prices to that of prices that prevailed during the base year. It is calculated as:

  • Nominal GDP is the market value of goods a

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Question number: 52

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

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Why the ‘Gross Domestic Product’ is sometimes referred to as a ‘Grossly Deceptive Product’?

Explanation

  • Gross Domestic Product (GDP) is defined as a measure of the total flow of goods and services produced by the economy over a specified period usually a year.
  • The following reason contributes to GDP becoming Grossly Deceptive Product:
  • Black money generation: Black money is not generated from the economic phenomenon only, but it has political,

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Question number: 53

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

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the knife edge instability problem in Harrod Domar model.

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 att

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Question number: 54

» Economic Thought » Mercantilism Physiocrats

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

How surplus and hence, wealth is generated as per Physiocrats? Explain in terms of Quesnay’s Tableau Economies.

Explanation

  • Physiocrats held agriculture supreme among all occupations, since it was the source of wealth.

    • It is in agriculture that nature works along with man. In this, agriculture has been given a dominant place because it plays an important role in economic development of the country.

    • Agriculture is the only sector, which yields surplus produce

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Question number: 55

» Global Institutions » IMF and WTO

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Comment on Agreement on Agriculture (AoA) under WTO with reference to agricultural subsidies.

Explanation

  • The WTO Agreement on Agriculture contains provisions in 3 broad areas of agriculture and trade policy: market access, domestic support and export subsidies.

    • Market Access: This includes that prevailing non-tariff barriers in agriculture should be abolished and converted into tariff barriers.

    • Domestic Support: It can be categorized under v

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Question number: 56

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the meaning of National Product at market prices and National product at factor cost.

Explanation

Net National Product (NNP) is the monetary value of finished goods and services produced by a country’s citizens, overseas and domestically, in a given period.

  • Net factor Income from abroad - Depreciation

  • Net factor Income from abroad – Depreciation –

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Question number: 57

» International Economics » Theories of International Trade

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

“Despite merit, Hecksher Ohlin theory has some shortcomings”. Discuss.

Explanation

This theory is based upon highly over simplifying assumptions of perfect competition, full employment of resources, identical production function, and absence of transport costs. Because of these assumptions, this model becomes unrealistic.

  • This model assumes fixed quantities of factor of production, given the production functions, income and

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Question number: 58

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain Futures Contract. What are its types?

Explanation

  • A ‘Future’ is a contract for buying or selling the underlying asset for a specific price at a pre-determined time.

    • If a person buys a futures contract, he promises to pay the price of the asset at a specified time and if a person sells a future, he makes a promise to transfer the asset to the buyer of the future a specified price at a parti

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Question number: 59

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

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Compare and contrast demand pull and cost push inflation.

Explanation

Demand pull inflation refers to a situation in which aggregate demand at the existing price level far exceeds aggregate supply of goods and services. Such inflation occurs due to excessive demand. Factors responsible for this:

  • The major source of inflation is increase in money supply in the economy.

    Increase in money supply results from an

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