EDUCATION CIRCLE

GDP:-it mesausres the market value of all final goods and services produced within a country in a given a period. GNP:-it measures the market value of all final goods and services produced by a country’s citizens or residents.  The difference is subtle but improtant.  GNP excludes economic activity that occurs in the U.S. but is owned by foreigners and includes American economic activity that occurs in other countries.  GDP is place based whereas GNP is ownership based.  Thus, if a foreigner creates an internet startup in Silicon valley, this will count as GDP, but not GNP.  If General Electric opens a new plant in Poland, this investment will be included in GNP, but not GDP. National Income:-National income is equal to GNP less the consumption of fixed capital (ex- depreciation). Personal Income :- it measures the amount of income available to individuals in terms of funds on hand.  Personal income equals to national income less: corporate profits ...

1.The exchange rate is kept the same in all parts of market by- A) exchange arbitrage✔ B) Hedging C) Interest arbitrage D) speculation 2. How many % surcharge is affected on below 1cr ? 1.4 2.5 3.10✔ 4.15 3. In long run under monopolistic competition profits are maximized or losses are minimized when A.MR=MC✔ B.MR=AC=AR C.MR>AR D.MR<MC 4.Harrod took which factor in his technical progress model? A.labour✔ B. Capital C.both D.None 5. The term microeconomics given by A. John Marshall B. J R Hicks C. Ragnar Frisch✔ D. Simon Kuznets 6.Transfer payment by the government are not included in the net domestic product because:  A - These are gift from the government to the recipients  B - They are not counted as commodities  C - No corresponding production of goods and service has taken place to match such payment ✔ D -There may be leakages in such payment 7.Capitalism is called market economy because A. Producers and Consumers are free t...

1) Let x and y be events on the same sample space, with P (x) = 0.6 and P (y) = 0.7. Can these two events be disjoint? A) Yes B) No Solution: (B) These two events cannot be disjoint because P(x)+P(y) >1. P(xꓴy) = P(x)+P(y)-P(xꓵy). An event is disjoint if P(xꓵy) = 0. If x and y are disjoint P(xꓴy) = 0.6+0.7 = 1.3 And Since probability cannot be greater than 1, these two mentioned events cannot be disjoint.  2) Soni has 2 kids and one of them is a girl. What is the probability that the other child is also a girl?You can assume that there are an equal number of males and females in the world. A) 0.5 B) 0.25 C) 0.333 D) 0.75 Solution: (C) The outcomes for two kids can be {BB, BG, GB, GG} Since it is mentioned that one of them is a girl, we can remove the BB option from the sample space. Therefore the sample space has 3 options while only one fits the second condition. Therefore the probability the second child will be a girl too is 1/3.  3) A fair ...

Price Elasticity:-It measures the sensitivity of the quantity demanded or the quantity supplied to the change in the price. In other words, how much will a change in price affect the quantity demanded or supplied? Price elasticity is calculated by taking the percentage change in quantity divided by the percentage change in price. On a linear supply or demand curve (a straight line), you can use the following price elasticity formulas: Ep = (% Change Q) / (% Change P) Ep = ((Change in Q) / (Q1)) / ((Change in P) / (P1)) Ep = ((Q2 - Q1) / (Q1)) / ((P2 - P1) / (P1))      Or dQ/dP *P/Q  Note that while price elasticity is related to the slope of the line, it is not actually the slope of the line. Recall that the slope of the line is calculated by "rise over run," or the change in the y-axis divided by the change in the x-axis. Price elasticity is calculated by "run over rise," or the change in quantity (on the x-axis) divided by the change in price (on the y-a...

The Micro, Small and Medium Enterprises Development Act, 2006 ("Act") was enacted with a view to facilitate the promotion and development of micro, small and medium enterprises ("MSMEs") and  enhancing the competitiveness among them. The MSMEs are significant in providing large employment opportunities at a relatively lower capital cost than larger industries and are also imperative in facilitating industrialization of rural and backward areas which results in assuring more equitable distribution of national income. The Micro, Small and Medium Enterprises Development (Amendment) Bill, 2018 ("Bill") was introduced in the Lok Sabha by the Minister of State for MSMEs, Mr. Giriraj Singh, on July 23, 2018, with the objective of encouraging ease in doing business and making the norms of classification of enterprises growth oriented. The Bill seeks to amend the Act and appears to be a major overhaul in the manner in which MSMEs are classified under the Act ...

The prize was established in 1968 by a donation from Sweden's central bank the Riksbank to the Nobel Foundation to commemorate the bank's 300th anniversary.As it is not one of the prizes that Alfred Nobel established in his will in 1895, it is not a Nobel Prize.However, it is administered and referred to along with the Nobel Prizes by the Nobel Foundation. Laureates are announced with the Nobel Prize laureates, and receive the award at the same ceremony.Awarded for Outstanding contributions in Economic Sciences, Location:-Stockholm, Sweden, Presented by:-Royal Swedish Academy of Sciences &  Reward: - 9 million, Swedish krona (£720,000,Indian=8.27 cr.)   2020:Paul R. Milgrom and Robert B. Wilson for "improvements to auction theory and inventions of new auction formats.” 2019: Abhijit Banerjee, Esther Duflo, Micheal Cramer jointly Awarded in the Field of  “Dramatically improved our ability to fight poverty in practice.” 2018: William D. Nordhaus of Yale University ...

   The change in business investment expenditures induced by a change in income or production (national income or gross domestic product). The marginal propensity to invest (MPI) is another term for the slope of the investment line and is calculated as the change in investment divided by the change in income or production. The MPI plays a role in Keynesian economics. It augments the slope of the aggregate expenditures line and is part to the multiplier process. A related marginal measure is the marginal propensity to consume. The marginal propensity to invest (MPI) indicates the extent to which investment expenditures are induced by changes in income or production. If, for example, the MPI is 01, then each dollar of extra income in the economy induces 10 cents of investment expenditures. The marginal propensity to invest is important to the study of Keynesian economics. First, the MPI reflects induced investment. Second, the MPI is the slope of the investment line, which ma...

Wholesale Price Index (WPI) WPI first published in 1902 and was one of the more economic indicators available to policy makers until it was replaced by most developed countries by the Consumer Price Index in the 1970s. WPI is the index that is used to measure the change in the average price level of goods traded in wholesale market. In India, a total of 697 commodities data on price level is tracked through WPI which is an indicator of movement in prices of commodities in all trade and transactions. It is also the price index which is available on a weekly basis with the shortest possible time lag only two weeks.Base year to calculate WPI is 2011-2012=100 Consumer Price Index (CPI) in India comprises multiple series classified based on different economic groups. There are four series, viz the CPI UNME (Urban Non-Manual Employee), CPI AL (Agricultural Labourer), CPI RL (Rural Labourer)and CPI IW (Industrial Worker). While the CPI UNME series is published by the Central Statistical Or...

The demand curve generally slopes downward from left to right. It has a negative slope because the two important variables price and quantity work in opposite direction. As the price of a commodity decreases, the quantity demanded increases over a specified period of time, and vice versa, other , things remaining constant. The fundamental reasons for demand curve to slope downward are as follows:-     (i) Law of diminishing marginal utility: The law of demand is based on the law of diminishing marginal utility. According to the cardinal utility approach, when a consumer purchases more units of a commodity, its marginal utility declines. The consumer, therefore, will purchase more units of that commodity only if its price falls. Thus a decrease in price brings about an increase, in demand. The demand curve, therefore, is downward sloping.     (ii) Income effect: Other things being equal, when the price of a commodity decreases, the real income or the purchasing ...

1934:-Planned Economy concept given by M.Visvearaya (Civil Engineer). 1938:‘National Planning Committee’ was established under the chairmanship of Jwahar Lal Nehru by the Indian National Congress(Subhash Chandra Bose). Its recommendations could not be implemented because of the beginning of the Second World War and changes in the Indian political situation. 1944: ‘Bombay Plan’ was presented by Eight Industrialists of Bombay viz. Mr. JRD Tata, GD Birla, Purshottamdas Thakurdas, Lala Shriram, Kasturbhai Lalbhai, AD Shroff , Ardeshir Dalal, & John Mathai working together prepared “A Brief Memorandum Outlining a Plan of Economic Development for India”. This is known as “Bombay Plan”. This plan envisaged doubling the per capita income in 15 years and tripling the national income during this period. Nehru did not officially accept the plan, yet many of the ideas of the plan were inculcated in other plans which came later.  1944:-People’s plan was drafted by MN Roy. This...

Inflation :-It is a sustained increase in the price level of goods and services in an economy over a period of time.The opposite of inflation is deflation (negative inflation rate). Inflation affects economies in various positive and negative ways. Disinflation :-A fall in the rate of inflation but not sufficient to bring about deflation. The opposite of disinflation is reflation (negative disinflation rate)is still rising but at a slower rate, for example of disinflation a drop in the annual inflation rate from 6% to 2%. Reflation :-it is a monetary policy designed to expand a country's output. Reflation policies can include reducing taxes, changing the money supply and lowering interest rates. Deflation :-When the overall price level decreases so that inflation rate becomes negative, it is called deflation. It is the opposite of the often-encountered inflation.     Inflation occurs when the price of goods and services rise, while deflation occurs when those prices de...

HDI and PQLI:-HDI (0-1)has three dimensions 1.life expectancy at Birth 2.litaracy Base on schooling (15mean-18expected) 3.per capta income (GNI/GDP) Whereas in PQLI(1-10:- 1.life expectancy at Birth 2.litracy 3.Mortality rate of Child (0-5/6)

■Cournot duopoly model- 1838  ■Bernard duopoly model- 1880  ■Edge worth duopoly model- 1897   ■Stackeel duopoly model- 1933   ■Chamberlin duopoly model- 1934   ■Sweezy duopoly model- 1939  ■Neumann Morgenstern game theory model- 1944   ■Baumaul duopoly model- 1959   ●Relative income hypothesis- J S Densenberry.   ●Father of economics- Adam smith   ●Originator of law of demand- Alfred Marshall   ●Revealed preference theory- Paul Samuelsson   ●Cardinal utility/ neo classical approach- Alfred Marshall   ●Ordinal utility/ indifference curve- F Y edge worth, vilfredo Pareto, EE Slustky, J R Hicks and RGD Allen ●Price discrimination- A C pigou   ●Free entry & exit/ factor mobility concept- Adam smith   ●Exception of law of demand- Beham   ●Perfect competition-chembrlin ●Imperfect competition- John Robinson   ●Kinked ...

As we know many parts of economics which of them are two of the best known areas are the study of Macroeconomics and Microeconomics. The two concepts are closely intertwined and can sometimes be confusing. This article will provide you with the explanations necessary to differentiate between Macroeconomics and Microeconomics. #Macroeconomics:-it refers to be broad study of economics, so looking at concepts like industry, country, or global economic factors. Macroeconomics includes looking at concepts like a nation's Gross Domestic Product (GDP), unemployment rates, growth rate, and how all these concepts interact with each other. Studying and applying macroeconomics is incredibly important at the government level as the policy and economic decision and regulations enacted by government can have a major impact on many aspects of the overall economy To demonstrate its theory in practice we'll briefly look at how interest rates fit into its policy. Extensive study goes int...

■ What was the slogan of poverty eradication given under the Five Year Plan? Answer: - Fifth Five Year Plan, ■ Where is the headquarters of the international labor organization? Answer: - Geneva, ■ Where is the OPEC headquarters? Answer: - In Vienna, ■ When All India Khadi Village Industries Commission was established? Answer: - In 1957 AD, ■ Often in the newspapers the bank's CASA deposits are written about. CASA deposits? Answer: - Demand demand, ■ In the market where long-term securities like stocks are bought and sold, is it generally called? Answer: - Capital Market, ■ Which bank is mainly concerned with housing loan? Answer: - HDFC, ■ Which committee was set up to suggest ways to improve customer service in banks? Answer: - Goopiriya Committee, ■ Is the committee set up to recommend for the restructuring of weaker banks? Answer: - Verma Committee, ■ is the largest private sector bank in India?Answer: - ICICI Bank, ■ On the basis of which committee did No...