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Answer the following question.
Define "Trade surplus". How is it different from "Current account surplus"?
Concept: Concept of Balance of Payments >> Balance of Payments Surplus and Deficit
"Under the flexible exchange rate system, the Central Bank does not intervene in the foreign exchange market."
Justify the statement, giving valid arguments.
Concept: Determination of the Exchange Rate
Explain the impact of home currency depreciation on the exports of a nation.
Concept: Determination of the Exchange Rate
Giving valid reason, state whether the following statement is true or false:
Dividend received from investment abroad is recorded on the credit side of the capital account.
Concept: Concept of Balance of Payments >> Current Account
Giving valid reason, state whether the following statement is true or false:
Depreciation of the Indian Currency will lead to promotion of Indian exports.
Concept: Determination of the Exchange Rate
Distinguish between Autonomous transactions and Accommodating transactions.
Concept: Concept of Balance of Payments >> Balance of Payments Surplus and Deficit
“In rural areas of India more members of a family are engaged on work, yet the gross income of the family is generally low.”
Identify the type of unemployment indicated in the above statement and explain the paradox associated with it.
Concept: Concept of Unemployment
"In India women participation rate is lower in urban areas than in the rural areas." Explain with valid arguments.
Concept: State of India’s Environment
Giving reason comment on the shape of production possibilities curve based on the following schedule:
| Good X (units) | Good Y (units) |
| 0 | 8 |
| 1 | 6 |
| 2 | 4 |
| 3 | 2 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 20 |
| 1 | 18 |
| 2 | 14 |
| 3 | 8 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
Giving reason, comment on the shape of Production Possibilities Curve based on the following table :
| Good X (units) | Good Y (units) |
| 0 | 4 |
| 1 | 3 |
| 2 | 2 |
| 3 | 1 |
| 4 | 0 |
Concept: Concepts of Production Possibility Frontier
How do infrastructure facilities boost production?
Concept: Infrastructure
Answer the following question.
Why is a Production Possibility Curve concave to the origin? Explain.
Concept: Concepts of Production Possibility Frontier
Why does an economic problem arise? Explain.
Concept: Central Problems of an Economy
Distinguish between positive economics and normative economics, with suitable examples.
Concept: Positive and Normative Economics
“The pre-independent India’s occupational structure experienced growing regional variation.”
Justify the above statement with valid explanation.
Concept: Occupational Structure
Find net value added at factor cost:
(Rs lakh)
(i) Durable use producer goods with a life span of 10 years 10
(ii) Single use producer goods 5
iii) Sale 20
(iv) Unsold output produced during the year 2
(v) Taxes on production 1
Concept: Circular Flow of Income and Methods of Calculating National Income
Find national income and private income:
| (Rs crore) | ||
| (i) | Rent | 200 |
| (ii) | Net current transfer to abroad | 10 |
| (iii) | National debt interest | 60 |
| (iv) | Corporate tax | 100 |
| (v) | Composition of employees | 900 |
| (vi) | Current transfers from government | 150 |
| (vii) | Interest | 400 |
| (viii) | Interest | 50 |
| (ix) | Undistributed profits | 250 |
| (x) | Net factor income to abroad | (-)10 |
| (xi) | Income accruing to government | 120 |
Concept: Private Income
Explain the precautions that are taken while estimating additional income by the value-added method.
Concept: Circular Flow of Income and Methods of Calculating National Income
If the Real GDP is Rs400 and Nominal GDP is Rs450, calculate the Price Index (base = 100).
Concept: GDP and Welfare
