IEcoS (Economic Services) Economics Paper-2: Questions 69 - 74 of 82

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Question number: 69

» 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

Elucidate the concept of balanced growth model.

Explanation

  • Nurkse idea of balanced growth explains that a synchronized application of capital to a wide range of industries is necessary for the enlargement of market and for breaking the vicious circle of poverty in an underdeveloped country.

    • This idea rests on the balance in demand approach. He does not neglect the supply side of balanced growth.

    • He assumes s

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Question number: 70

» 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

What is Reciprocal Demand? Critically evaluate the reciprocal demand theory?

Explanation

By reciprocal demand, Mill meant the quantities of exports that a country would offer at different terms of trade, in return of varying quantities of imports. In other words, reciprocal demand refers to the intensity of demand for the product of one country in the other country.

  • Assumptions: (i) The trade takes place between two countries, A and B.

  • T

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Question number: 71

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

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

Examine the effect of international trade on the difference in the factor prices ‘between nations’, and the effect of international trade on the relative factor prices and income ‘within’ each nation.

Explanation

  • According to this theory, countries which are rich in labour will export labour intensive goods and those rich in capital will export capital intensive goods.
  • Assumptions of the model:

    • It considers a two-commodity, two-country and two factors case. It takes into account labour and capital. It is possible to extend this to multi-commodity and multi-fa

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Question number: 72

» Theory of Employment, Output, Inflation, Money and Finance » The Inflationary Gap » Philip's Curve and Its Policy Implication

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Appeared in Year: 2015

Essay Question▾

Describe in Detail

The following functions are estimated for an economy:

Consumption Function:

Investment Function:

Government Purchases: G = 200

Taxes: T = 0·2Y

Real demand for money:

Nominal money supply:

Now Estimate the equation for the IS curve and the LM curve. Thereafter, solve the system for equilibrium level of real income and real interest rate.

Explanation

a) IS equation

- eq. 1

B) LM equation

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Question number: 73

» 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

“The best strategy of development is the creation of imbalances. ” Discuss this statement in light of Indian context.

Explanation

Hirschman’s Unbalanced growth model:

  • According to Hirschman, “Development is a chain of disequilibria that must be kept alive rather than eliminate the disequilibrium of which profits and losses are symptoms in a competitive economy.

    • If economy is to keep moving ahead, the task of development policy is to maintain, tension, disproportions and disequi

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Question number: 74

» Economic Thought » Mercantilism Physiocrats

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

State briefly the key propositions of Monetarist school of macroeconomics.

Explanation

Monetary variables which includes the growth rate of the stock of money strongly influence the determination of the behavior of nominal and real GNP in the short-run.

  • Rapid growth of money supply in excess of the long-run growth of real output cannot only be offset by continuous adjustments in income velocity or short-run adjustments in output.

  • It ta

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