IEcoS (Economic Services) Economics Paper-3: Questions 20 - 29 of 74

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Question number: 20

» Industrial Economics » Market Structure and Profitability

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Discuss the different measures of market concentration. Is there any relation between concentration and monopoly power?

Explanation

Market concentration means number and size distribution of sellers in the market.

It has two measures of concentration. One is the absolute measures, which is defined as the measures based on number of firms and their percentage market share and other is the relative measures which defines the percentage share as per size distribution accountin

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Question number: 21

» Industrial Economics » Market Structure and Profitability

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a short note on Contestable Markets.

Explanation

  • Contestable market theory is an economic concept that refers to a market in which there are only a few companies that, because of the threat of new entrants, behave in a competitive manner.

    Contestable market theory assumes that even in a monopoly or oligopoly, the existing companies will behave competitively when there is a lack of barriers,

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Question number: 22

» Environmental Economics » Climatic Change Problems

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the causes and consequences of global climate change and analyze international initiatives taken under this regard.

Explanation

  • Global warming refers to an unequivocal and continuing rise in the average temperature of the climate system of the Earth.

    • Causes: The drastic increase in the emission of CO2 (carbon dioxide) within the last 30 years caused by burning fossil fuels has been identified as the major reason for the change of temperature in the atmosphere.

    • M

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Question number: 23

» Public Finance » Public Expenditure Policy and Social Cost Benefit Analysis

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a short note on Internal Rate of Return Method of Project Analysis.

Explanation

Internal rate of return (IRR) is the interest rate at which the net present value of all the cash flows (both positive and negative) from a project or investment equal zero.

  • Internal rate of return is used to evaluate the attractiveness of a project or investment.

  • If the IRR of a new project exceeds a company’s required rate of return, th

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Question number: 24

» Environmental Economics » Environmentally Sustainable Development

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Discuss the travel cost method of assessing the environmental value of a tourist site.

Explanation

  • It is used for calculating the economic values of environmental goods.

    • It is mainly applied for determining the economic values of sites that are used for recreation such as national parks. This method is based on the assumption that travel cost represents the price of access stand to that site.

    • Thus, people’s willingness to pay for a v

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Question number: 25

» Public Finance » Shadow Prices of Investment

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a note on shadow prices of investment.

Explanation

  • Shadow pricing is used to refer to either one of two things: the actual market value of a money market fund share, or, more commonly, the assignment of a dollar value to an abstract commodity that is not ordinarily quantifiable as having a market price, but needs to be assigned a valuation to conduct a cost-benefit analysis.

    In the latter ins

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Question number: 26

» Environmental Economics » Green GDP

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Write a short note on Green GDP.

Explanation

Green GDP is a term used generally for expressing GDP after adjusting for environmental damage.

  • The System of National Accounts (SNA) is an accounting framework for measuring the economic activities of production, consumption and accumulation of wealth in an economy during a period of time.

  • When information on economy’s use of the natural

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Question number: 27

» Environmental Economics » Kyoto Protocol, Tradable Permits and Carbon Taxes

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Write a short note on tradable permits.

Explanation

Tradable permits are instruments aimed at reducing pollution. A maximum permissible emission rate is determined by government and permits that allow for the production of a maximum emission are issued to industry players.

  • These permits can subsequently be traded to firms that require more permits in order to continue their activities.

  • In

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Question number: 28

» Public Finance » Theories of Taxation » Incidence of Taxation

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

What are the requirements for a good tax structure? Discuss how far the Benefit Tax principle fits with these criteria.

Explanation

  • The requirements of a good tax structure as follows:

    • Revenue yield should be adequate.

    • The distribution of the tax burden should be equitable. Everyone should be made up to pay his or her fair share.

    • What matters in this context is not only the impact point at which the tax is imposed but its final resting place. The problem of inci

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Question number: 29

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

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Appeared in Year: 2011

Essay Question▾

Describe in Detail

Explain the growth theory of a firm given by Robin Morris.

Explanation

  • According to Robin Morris, managers strive to maximize the balanced growth rate of an organization subject to managerial and financial constraints. Morris translates the two growth rates in to two utility functions, which are as follows:

    • Manager’s utility functions (salary, power, job security, prestige and status)

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