IEcoS (Economic Services) Economics Paper-3: Questions 1 - 9 of 74

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Question number: 1

» Industrial Economics » Micro Level Investment Decisions and Behavior of Firms

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Distinguish between Cournot and Bertrand models of duopoly. (200w, 15 Marks)

Explanation

Classical models of duopoly (only two producers) are given by French economists Augustin Cournot and Joseph Bertrand. Both the models, assuming that firms ignore their interdependence, provides solution to the price-output determination problem in oligopoly. However, there are important differences in the assumptions of these models.

Cournot and Bertrand models of duopoly.

Cournot and Bertrand Models of Duopoly.

Cournot and Bertrand models of duopoly.

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Question number: 2

» Public Finance » Theories of Taxation » Incidence of Taxation

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Distinguish between ‘ability to pay’ and ‘benefit principles’ of taxation. (200w, 15 Marks)

Explanation

  1. Benefits principle of taxation is given by Bowen and Erik Lindahl. And the ability to pay principle of taxation was provided by A. C. Pigou.
  2. The benefits principle takes a market oriented approach to taxation and explains the relationship between the taxpayer and government in quid pro quo terms. However, in ability to pay principle taxes are se

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Question number: 3

» Public Finance » Budgetary Deficits

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Explain the concepts of revenue deficit, effective revenue deficit, fiscal deficit and primary deficit. (200w, 15 Marks)

Explanation

Deficit is excess of expenditure over revenue received. There are different concepts to measure deficit out of which revenue deficit, effective revenue deficit, fiscal deficit and primary deficit is mostly used in government accounts.

  1. Revenue deficit is the difference between revenue expenditure and revenue receipts. As per the Fiscal Responsi

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Question number: 4

» State, Market and Planning » Decentralised Planning

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

What is decentralised planning? Explain. (100w, 5 Marks)

Explanation

Decentralised planning

Decentralised Planning

Decentralised planning

  1. Decentralised planning also known as bottom to top planning or grassroots level planning is planning by the local bodies (Panchayati Raj institutions) to deal more effectively with the local problems by better utilisation of local resources.

  2. The idea of decentralised planning is consistent wit

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Question number: 5

» State, Market and Planning » Planning in a Developing Economy

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Elaborate the reasons and advantages of replacing MRTP policy with competition policy. (200w, 15 Marks)

Explanation

The government of India adopted Monopolies and Restrictive Trade Practices (MRTP) Act in 1969 to control the centralising and monopolistic tendencies and restrictive trade practices of large business houses.

However, in 2002 the MRTP Act was replaced by competition policy in view of following reasons:

  1. Since it was based on size as a factor it r

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Question number: 6

» Environmental Economics » Environmentally Sustainable Development

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

Explain the role of Green Climate Fund. (100W, 5 Marks)

Explanation

  1. Green climate fund, result of UN-led climate negotiations, aims to raise $100 billion a year by 2020 to assist, particularly, developing countries, and small island nations to deal with and adapt to climate change.
  2. The fund set up by 194 nations party to UNFCCC plays an important role in serving the Paris agreement signed in 2015 and supporting

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Question number: 7

» Environmental Economics » Environmentally Sustainable Development

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

What do you understand by carbon trading? (100w, 5 Marks)

Explanation

  1. Carbon trading or carbon an emission trading is market based tool used by countries to meet obligations to regulate Greenhouse gases or climate change. It is a system of buying and selling emissions as a commodity.

  2. This system of trading originated with Kyoto protocol in 1997 and is intended to reduce overall emissions to 5 per cent below 1

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Question number: 8

» Public Finance » Budgetary Deficits

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

What do you understand by dead weight loss (excess burden) in commodity taxation? (100w, 5 Marks)

Explanation

Dead weight loss is the fall in total surplus that results from a market disruption such as a tax.

  • In other words, it is a loss of economic efficiency that can occur when equilibrium for a good or service is not achieved.

  • It consists of the loss of consumer surplus for buyers plus the loss of producer surplus for sellers who do not partici

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Question number: 9

» Industrial Economics » Entry Preventing Pricing

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Appeared in Year: 2017

Essay Question▾

Describe in Detail

What is the entry preventing pricing strategy? (100w, 5 Marks)

Explanation

  1. In a general setting, new firms tend to enter the industry after lured by excess profits [Price Average Cost (AC) ] enjoyed by the existing firms. Thus, reducing the profits to zero

  2. Entry preventing pricing strategy is one whereby existing firms fix the price at a level of demand which restrict

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