IEcoS (Economic Services) Economics Paper-3: Questions 9 - 17 of 74

Access detailed explanations (illustrated with images and videos) to 74 questions. Access all new questions we will add tracking exam-pattern and syllabus changes. Unlimited Access for Unlimited Time! View Sample Explanation or View Features.

Rs. 300.00 or

How to register?

Question number: 9

» Industrial Economics » Entry Preventing Pricing

Edit

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 restricts any new entry while they conti

… (81 more words) …

Question number: 10

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

Edit

Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the need and role of community participation in local level planning?

Explanation

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

  1. For the empowerment of local disadvantaged groups such as women, schedu

… (169 more words) …

Question number: 11

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

Edit

Appeared in Year: 2017

Essay Question▾

Describe in Detail

Discuss the role of state, market, and planning as three legs of development from the perspectives of equity and efficiency. (300w, 20 marks)

Explanation

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 and

… (150 more words) …

Question number: 12

» Industrial Economics » Conduct and Performance of Firms

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on entry barriers.

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 number: 13

» Public Finance » Theories of Taxation » Optimal Taxes and Tax Reforms

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on optimal taxation.

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 number: 14

» Public Finance » Budgetary Deficits

Edit

Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a short note on Revenue and Fiscal deficits.

Explanation

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

… (123 more words) …

Question number: 15

» Public Finance » Theory of Public Debt Management

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on Debt trap.

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 number: 16

» Environmental Economics » Pollution Taxes and Pollution Permits

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

What do you mean by environmental pollution? Evaluate different mechanisms to control environmental pollution.

Explanation

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 number: 17

» Environmental Economics » Environmentally Sustainable Development

Edit

Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain Schumpeterian concept of innovation.

Explanation

  • 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 alw

… (410 more words) …

Developed by: