IEcoS (Economic Services) Economics Paper-3: Questions 42 - 51 of 74

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Question number: 42

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain Coase theorem to ensure socially optimum solution.

Explanation

  • The article ‘The Problem of Social Cost’ was published in the journal of ‘Law and Economics’ in 1960.

    • He argued that govt. need not be involved in internalizing the externalities. Private bargain and negotiations can lead to efficient solution without government intervention.

    • This view is popularly called Coase theorem. The basic idea of this theorem

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Question number: 43

» Environmental Economics » Environmentally Sustainable Development

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Discuss the role of property rights and transaction costs in relation to Coase Theorem.

Explanation

The article ‘The Problem of Social Cost’ was published in the journal of ‘Law and Economics’ in 1960. He argued that govt. need not be involved in internalizing the externalities.

  • Private bargain and negotiations can lead to efficient solution without government intervention. This view is popularly called Coase theorem.

  • The basic idea of this theorem

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Question number: 44

» Public Finance » Theory of Public Debt Management

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Write a short note on Public Choice theory.

Explanation

Public choice theory was developed in USA during the past two or three decades. This approach is associated with the economists like A. Downs, J. M. Buchanan and G. Tullock and others.

  • Public choice is concerned with the application of economics with that of political science. The growth of public sector has been an important objective of public cho

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Question number: 45

» Public Finance » Shadow Prices of Investment

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Appeared in Year: 2012

Essay Question▾

Describe in Detail

Explain the methods of determining shadow price.

Explanation

  • Shadow prices have been used as an adjective in three senses:

    • In mathematical programming, the term is used for interpretation of dual problem and in this sense, the shadow price Lagrange’s multiplier for constraint optimization.

    • The term is used to cover the benefits and costs that are unpriced.

    • The shadow prices are used in those countries where pri

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Question number: 46

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

What do you mean by tax incidence? Analyze how is it determined under the modern theory of incidence of taxation?

Explanation

Tax incidence is defined as its final resting place. It is to be seen and judged in terms of the money burden. Thus, the incidence of a tax is upon that economic unit which finally bear the money burden of it and which are not able to pass it on to others.

  • The modern economists like Dalton were of the view that the shifting of taxation is basically

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Question number: 47

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

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Appeared in Year: 2018

Essay Question▾

Describe in Detail

In the case of Corporate Tax, who bears the incidence? Substantiate your answer in the light of Herberger Model. (2012)

Explanation

Corporation tax is considered to be the most controversial issue in tax incidence analysis.

  • According to the traditional view, shifting of corporation tax is not possible but modern economists do not agree with this view.

  • In the opinion of the traditional thinkers on this subject matter, the burden rests with the stockholders through reduced dividend

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Question number: 48

» Environmental Economics » Environmentally Sustainable Development

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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 ever increasing and continuing rise in the average temperature of the climate system of the Earth.

    • Causes: The drastic increase in the emission of carbon dioxide within the past few years, caused by burning fossil fuels has been the major reason for the change of temperature in the atmosphere. More than of the worldwid

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Question number: 49

» Environmental Economics » Environmentally Sustainable Development

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Appeared in Year: 2010

Essay Question▾

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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

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Question number: 50

» Public Finance » Theory of Public Debt Management

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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

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Question number: 51

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

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Appeared in Year: 2010

Essay Question▾

Describe in Detail

Explain the concept of equity in taxation. Analyze how ability to pay theory is useful in achieving it.

Explanation

The concept of equity in taxation refers to the social justice in the allocation of tax burden. Equity is identified with other general criteria such as fairness, justice, or avoidance of hardship, and linked with particular phenomenon such as distribution of income or property. There are two criteria of equity:

  • Horizontal equity implies that all th

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