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
Money multiplier in an economy rises with
increase in banking habit of the population
Nobel Prize for Economics 2016
Bengt Holmström, Oliver Hart
for their contributions to contract theory
Nobel Prize for Economics 2014
Jean Tirole
for his analysis of market power and regulation
Nobel Prize for Economics 2009
Elinor Ostrom
Nobel Prize for Economics 2008
Paul Krugman
Nobel Prize for Economics 1998
Amartya Sen
for his contributions to welfare economics
Nobel Prize for Economics 1994
John Nash
or their pioneering analysis of equilibria in the theory of non-cooperative games.
Nobel Prize for Economics 1991
Robert Coase
for his discovery and clarification of the significance of transaction costs and property rights for the institutional structure and functioning of the economy
Nobel Prize for Economics 1987
Robert Solow
for his contributions to the theory of economic growth
Nobel Prize for Economics 1972
John Hicks and Kenneth Arrow
for their pioneering contributions to general economic equilibrium theory and welfare theory
Nobel Prize for Economics 1976
Milton Friedman
Nobel Prize for Economics 1970
Paul Samuelson
in 2000-2001, percent contribution of tertiary sector to GDP
50%
The sub-prime lending crisis originated in which country
USA
Share of primary sector in labour force in 2000
60%
The beginning of modern industry in india
late 18th century
What is Engel’s Law
Engel’s law is an observation in economics stating that as income rises, the proportion of income spent on food falls, even if absolute expenditure on food rises.
CENVAT is related to
excise duty
Share of urban population in India
30%
Main function of finance commission
determine distribution of central tax revenue between centre and state
73rd constitutional amendment refers to
Panchayati Raj institutions
What is TRIPS
The Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS) is an international legal agreement between all the member nations of the World Trade Organization (WTO)
It sets down minimum standards for the regulation by national governments of many forms of intellectual property (IP) as applied to nationals of other WTO member nations.[3] TRIPS was negotiated at the end of the Uruguay Round of the General Agreement on Tariffs and Trade (GATT) in 1994 and is administered by the WTO.
What is the Iron Law of Wages
The iron law of wages is a proposed law of economics that asserts that real wages always tend, in the long run, toward the minimum wage necessary to sustain the life of the worker.
What is Kuznet’s Curve
inverted u shaped relation between per capita income and inequality
What are the Bretton Woods institutions?
World Bank and IMF
What are participatory notes(stock markets)
permits given to foreign institutional investors registered to trade in indian stock markets
