IEcoS (Economic Services) Economics Paper-2: Questions 54 - 61 of 82

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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. It is only i

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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 various boxes

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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 – net indirect taxes

  • It can be defined as the net val

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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 costs.

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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 particular tim

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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 increase i

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Question number: 60

» Economic Thought » Keynesian and Monetarist Schools of Thought

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

What are the basic characteristics of monetarist school of thought?

Explanation

The monetarist school is generally associated with American economist Milton Friedman. This school maintains that the money supply is the key determinant on the demand side of short run economic activity.

  • Monetarist economists believe that the role of government is to control inflation by controlling the money supply.

  • Monetarists believe that markets

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Question number: 61

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

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Appeared in Year: 2016

Essay Question▾

Describe in Detail

What is a well behaved production function? Explain its role in the neo classical growth theory.

Explanation

  • According to Solow, the Harrod Domar model is based on unrealistic assumptions.

    • This model gives knife edge equilibrium problem because its key parameters like saving ratio, capital output ratio and capital labour ratio, if slide slightly either on either side, the result would be either growing unemployment or chronic inflation.

    • According to Solow,

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