IEcoS (Economic Services) Economics Paper-3: Questions 9 - 18 of 154
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Question 9
Appeared in Year: 2017
Describe in Detail Subjective▾
What is the entry preventing pricing strategy? (100w, 5 Marks)
EditExplanation
- 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
- Entry preventing pricing strategy is one whereby existing…
… (99 more words, 4 figures) …
Question 10
Appeared in Year: 2017
Describe in Detail Subjective▾
Discuss the need and role of community participation in local level planning?
EditExplanation
The 73rd and 74th constitutional amendment acts provides for local governments and local level planning, which is also referred to as bottom-up approach or grass root level planning.
Need for community participation:
The community participation in local level planning is necessary
- For the empowerment of local disadvantaged groups such as women, schedu…
… (170 more words, 13 figures) …
Question 11
Appeared in Year: 2017
Describe in Detail Subjective▾
Discuss the role of state, market, and planning as three legs of development from the perspectives of equity and efficiency. (300w, 20 marks)
EditExplanation
In a mixed economic setup as in India, public sector and private sector co- exits. Public sector comprises of state and a central planning authority and private sector which is driven by market mechanism.
Role as three legs of development:
State:
1. Removal of socio-economic inequalities (Equity) :
The objective of state is to achieve social justice an…
… (151 more words, 13 figures) …
Question 12
Explanation
Barriers to entry are the economic term describing the existence of high start-up costs or other obstacles that prevent new competitors from easily entering an industry or area of business. Barriers to entry benefit existing firms because they protect their revenues and profits.
- Common barriers to entry include special tax benefits to existing firms…
… (60 more words) …
Question 13
Explanation
Optimal taxation depends upon the trade off between efficiency and fairness.
- A fair tax is one that guarantees a socially desirable distribution of tax burden; an efficient tax is one with a small excess burden.
- A fair tax is often the one that imposes equal liabilities on people that have the same ability to pay, whereas an efficient tax system is o…
… (38 more words) …
Question 14
Appeared in Year: 2011
Describe in Detail Subjective▾
Write a short note on Revenue and Fiscal deficits.
EditExplanation
Revenue deficit is the gap between total revenue expenditure of the government and its total revenue receipts.
- The traditional concept of revenue deficit seeks to capture the effect of the budget on the economy in medium term. It gives the information on what the government is borrowing for.
- The revenue deficit implies a repayment burden in the futur…
… (125 more words) …
Question 15
Explanation
Debt trap represents a situation without borrowing afresh or without rescheduling of the repayments obligations, the total indebtedness of the debtor country keep growing or at least it does not decrease.
- A debt trap is a situation in which a borrower is led into a cycle of re-borrowing, or rolling over, their loan payments because they are unable t…
… (63 more words) …
Question 16
Appeared in Year: 2010
Describe in Detail Subjective▾
What do you mean by environmental pollution? Evaluate different mechanisms to control environmental pollution.
EditExplanation
Environmental pollution is defined as the contamination of the physical and biological components of the earth/atmosphere system to such an extent that normal environmental processes are adversely affected.
Mechanisms to control environmental pollution:
- Water prevention and control of pollution act, 1974 enacted to deal with water pollution.
- This act …
… (218 more words) …
Question 17
Appeared in Year: 2010
Describe in Detail Subjective▾
Explain Schumpeterian concept of innovation.
EditExplanation
- Schumpeter assumes a perfectly competitive economy which is in stationary equilibrium.
- In such a stationary state, there is perfect competitive equilibrium: no profits, no interest rates, no savings, no investments and no involuntary unemployment.
- This equilibrium is characterized by Schumpeter as “circular flow” .
- In a circular flow, from which we al…
… (414 more words) …
Question 18
Appeared in Year: 2011
Describe in Detail Subjective▾
Distinguish between Internal and External Public Debt. In this context, explain the debate on burden of Public Debt.
EditExplanation
Internal debts refer to public loans raised within the country from its citizen or banks or other financial institutions.
- External debt, on the other hand, refers to the obligations of a country to foreign government or foreign nationals or international financial institutions.
- In case of internal debt, the resources remain within the country; it onl…
… (205 more words) …