ECONOMICS-2015: Daily Answer Writing Challenge – 26 Archives How do the small trading nations share the gains from trade which occur as a consequence of gains from exchange and gains from specialisation ? (2011 – 20 marks) If all assumptions hold true, how does trade between nations tend to bring about equalisation of factor prices …
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ECONOMICS-2015: Daily Answer Writing Challenge – 25 Archives Distinguish between single and double factor terms of trade. Explain how far terms of trade of a developing economy would change with technological advancement and economic growth. (2014 – 20 marks) “Apart from bringing capital into a country, MNCs provide many other advantages that cannot be obtained …
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ECONOMICS-2015: Daily Answer Writing Challenge – 24 Archives Explain the conditions under which complete specialisation will be possible for two nations in case of comparative advantage. Suppose productivity per unit of labour for two antions, India and UK, is given as under: India UK Wheat (kg/manhour) 06 03 Cloth (yard/manhour) 04 02 Will mutually …
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ECONOMICS-2015: Daily Answer Writing Challenge – 22 Archives What is an offer curve? Draw two offer curves such that the offer curve of the home country has a section reflecting inelastic import demand and the foreign country’s offer curve is elastic throughout. Indicate in the diagram which portion of the home country’s offer curve is …
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ECONOMICS-2015: Daily Answer Writing Challenge – 22 Archives Would the introduction of automatic teller machines, which allows people to withdraw cash from banks as needed, make deposits more inconvenient and affect the money supply Elucidate. (2011 – 20 marks) Mention the different components of supply of money as specified by the Reserve Bank of India. …
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ECONOMICS-2015: Daily Answer Writing Challenge – 21 Archives The ‘non-rival nature’ of social goods consumption has important bearing on efficient resource allocation. Explore the problem with the examples and diagrams. (2011 – 20 marks) How does the burden of tax distribution between buyers and sellers in the ratio of elasticity of demand and that of …
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ECONOMICS-2015: Daily Answer Writing Challenge – 20 Archives Why is under-employment equilibrium possible in Keynesian economics, but not possible in Classical economics? Give reasons. (2012 – 20 marks) What do you mean by money multiplier? What are the factors that determine the value of the multiplier? (2012 – 20 marks) Why does the point of …
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ECONOMICS-2015: Daily Answer Writing Challenge – 19 Archives Show different stages of product life cycle. How do the shortcomings of diffusion lag of new technologies in recent years cause a time compression of the cycle? (2012 – 20 marks) Examine Kalecki’s model of distribution. Do you consider it a correct explanation of distribution ? (2012 …
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ECONOMICS-2015: Daily Answer Writing Challenge – 19 Archives Derive Marshall’s welfare economics from his concept of consumer surplus after explaining consumer’s surplus along with the underlying assumptions. (2012 – 20 marks) What is prisoner’s dilemma? How is it related to a strictly dominant industry? (2012 – 20 marks)
ECONOMICS-2015: Daily Answer Writing Challenge – 18 Archives Show how price output decision is taken by duopolists taking into account, their mutual reaction. Under what condition will the duopolistic market be in equilibrium? (2012 – 12 marks) “If firms produce differentiated products it is neither possible to identify the industry nor possible to draw its …
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ECONOMICS-2015: Daily Answer Writing Challenge – 17 Archives Elucidate how does Kalecki’s theory of distribution share the value of output between labour and capital. (2011 – 20 marks) The marginal efficiency of capital together with the current rate of interest determine the profitability of an investment project. How does it help in the selection of …
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ECONOMICS-2015: Daily Answer Writing Challenge – 16 Archives 1) ‘Monetarists are of the view that only money does and Keynesians believe that money does not matter.’ What is your reasoning of the extreme views held by the monetarists and the Keynesians ? (2011 – 20 marks) 2) Is Friedman’s quantity theory of money close to …
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ECONOMICS-2015: Daily Answer Writing Challenge – 15 Archives 1) Balanced growth strategy of development in terms of pattern of investment has to be in conformity not only with derived demands but final demands as well.” Argue whether this statement is about avoiding bottlenecks for certain sectors and excess capacities in others or promoting import substitution. …
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ECONOMICS-2015: Daily Answer Writing Challenge – 14 Archives 1) Point out the critical elements in typical PPP agreements in infrastructure projects to safeguard the interests of the public. 2) Explain the Lewis model of structural change from an agricultural economy to a modern industrial economy. State three major criticisms of the Lewis model. 3) Explain …
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ECONOMICS-2015: Daily Answer Writing Challenge – 13 Archives 1) Suppose the goods, financial, current account and foreign exchange markets are initially in equilibrium. The economy has low or imperfect capital mobility and operates at a fixed exchange rate. The economy is subject to a favourable demand shock that raises expenditure. What is the outcome of …
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ECONOMICS-2015: Daily Answer Writing Challenge – 12 Archives 1) Distinguish between single and double factor terms of trade. Explain how far terms of trade of a developing economy would change with technological advancement and economic growth. 2) “Apart from bringing capital into a country, MNCs provide many other advantages that cannot be obtained by borrowing …
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ECONOMICS-2015: Daily Answer Writing Challenge – 11 Archives 1) Suppose productivity per unit of labour for two antions, India and UK, is given as under: India UK Wheat (kg/manhour) 06 03 Cloth (yard/manhour) 04 02 2) Will mutually beneficial trade be possible for the two nations? If yes, explain whether specialisation shall be …
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ECONOMICS-2015: Daily Answer Writing Challenge – 10 Archives International Economics: 1) Analyse the partial equilibrium effects of a tarrif imposed by a large country on its imports in terms of consumers’ surplus (2014 – 10 marks) 2) “With the Doha Round of multilateral trade talks stalled, regional trade agreements (RTAs) have emerged as an …
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ECONOMICS-2015: Daily Answer Writing Challenge – 9 Archives International Economics: 1) What is an offer curve? Draw two offer curves such that the offer curve of the home country has a section reflecting inelastic import demand and the foreign country’s offer curve is elastic throughout. Indicate in the diagram which portion of the home …
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ECONOMICS-2015: Daily Answer Writing Challenge – 8 Archives What do you understand by shifting of a tax? How does a monopolist succeed in shifting the burden of a tax under increasing marginal cost? (2014 – 10 marks) Should the government impose a unit tax or an ad valorem tax if the objective is that they should …
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