Random Flashcards
Between 1750 and 1900, India’s share in world manufacturing output
fell from 25 percent to 2 percent
What is market capitalization
it is the market value of a company’s outstanding shares.
Difference between CRR and SLR
CRR is the percent of deposits bank has to hold in cash reserves with the RBI. Bank earns no interest in this.
SLR is the percent of deposits bank has to hold in liquid assets like gold, govt. securities etc. Banks earn from these assets.
What is the SENSEX?
Sensex is the benchmark index of the Bombay Stock Exchange (BSE). It is composed of 30 of the largest and most actively-traded stocks on the BSE, providing an accurate gauge of India’s economy. Initially compiled in 1986, the Sensex is the oldest stock index in India.
What is ex-ante and ex-post?
“Ex-ante” refers to any prediction that is made prior to either before all of the variables are known, or generally before an event occurs.
Ex-post is another word for actual returns and is Latin for “after the fact.” The use of historical returns has customarily been the most well-known approach to forecast the probability of incurring a loss on an investment on any given day.
What is stagflation?
rising prices, high unemployment, slow economic growth or stagnant demand
Current % of state shares in central taxes?
42%
Current investment rate of india is
30% approx
What is the Agreement on Agriculture?
Agreement on Agriculture (AoA) is an international treaty of the World Trade Organization. It was negotiated during the Uruguay Round of the General Agreement on Tariffs and Trade, and entered into force with the establishment of the WTO on January 1, 1995.
What are WTO subsidy boxes
Green Box
In simple terms , subsidies that do not distort trade fall in this box. According to WTO , green box subsidies should not distort trade , or at most cause minimal distortion.
These green box subsidies must be government-funded — not by charging consumers higher prices, and they must not involve price support.
Usually these subsidies are not directed at specific products and are not targeting subsidies and they may include direct income supports for farmers who are distressed due to crop loss or market breakdown.
Example - environmental and conservation programs, research funding, inspection programs, domestic food aid including food stamps, and disaster relief , farmer training programs, pest-disease control program
WTO Limit : There is no limit on governments for giving this kind of subsidies to their farmers.
Amber Box
The subsidies that distort the international trade by making products of a particular country cheaper as compared to same or similar product from another country is slotted under this box.
They distort trade balance because they encourage excessive production,therefore given country’s product becomes cheaper than others, in the international market.
Example :- Input subsidies such as subsidy on electricity , seeds , fertilizers , irrigation etc. Market support price (MSP) subsidies also fall under this box.
WTO limit -
For developed country - 5% of agriculture production in 1986-88
For developing country - 10% of agriculture production in 1986-88
Blue Box
These are basically Amber Box subsidies but they tend to limit the production. . Any support that would normally be in the amber box, is placed in the blue box if the support also requires farmers to limit their production.
This “Box” is a hotly debated topic. Countries argue that Blue box subsidies are crucial for ushering in agricultural reforms. Currently only few countries like Norway , Iceland , Slovenia etc use this kind of subsidies.
Example - Subsidies that don’t increase with production. For example subsidies linked with acreage or number of animals.
WTO Limit - Same as Green Box - nothing.
How does the Rawlsian social welfare function work?
The social welfare function that uses as its measure of social welfare the utility of the worst-off member of society.
A natural monopoly’s average cost curve…
keeps falling because of continuous economies of scale. In this case, marginal cost (MC) is always below average total cost (ATC) over the whole range of possible output.
Okun’s Law
negative relationship between unemployment rate and growth rate of real GDP
Poverty and Un-British rule in India written by
Dadabhai Naoroji
Income distribution of most countries follow
log-normal distribution
primary deficit
the fiscal deficit less the interest outgo in the budget
