NTA UGC NET/JRF Exam, Dec. 2019 Economics (Shift-I)

An allocation of inputs is technically efficient when a production process can't increase the output of one good without decreasing the output of another good.

It can also be defined as a firm's ability to produce the maximum output with the minimum amount of inputs, such as labor, capital and technology. This means that the firm is trying to be as productive as possible while still meeting its output goals.

Yes preferring a certain income to a risky income with the same expected value leads to riskaverse behavior. Risk aversion is the tendency to avoid risk. It is concave in shape.

Note: Risk aversion refers to the tendency of an economic agent to strictly prefer certainty to uncertainty An economy agent exhibiting risk aversion is said to be risk averse.

Formally, a risk averse agent strictly prefers the expected value of a gamble to the gamble itself.

Autonomous investment represent government spending to maintain and develop essential infrastructure and public services.
These investments are independent of economic conditions and changes in the income level. Their primary objective is to provide stability to the economy and support long-term growth.

1. Level technology
2. Expectation
3. Level of national income.

Phillips curve analysis holds good in the case of adaptive expectations, which is an approach outlined by Milton Friedman. Adaptive expectations is based on the idea that people form their inflation expectations by considering past inflation rates.

Note: Phillips Curve: A graph that shows the inverse relationship between the rates of unemployment and the rate of inflation in an economy, adaptive expectations theory; A hypothesized process by which people from their expectations about what will happen in the future based on what has happened in the past.

Generalized Least Square (GLS) Method is capable of providing BLUE in situations where OLS fails.
(b) GLS is OLS on the transformed variables that satisfy the standard least squares assumptions.

True statements that concerning a triangular or recursive system:-
(a) The parameters can be validity estimated using separate applications of OLS to each equation.
(b) The independent variables may be correlated with the error terms in other equation.
(c) An application of two-stage least squares would lead to unbiased but inefficient parameter estimation.

There are two series, both approach to infinity an their Sₙ (sum of terms). These series are known as convergent series.

Hence, both these series are convergents series.
Convergent Series: If sn is the sum of the firstr n terms of an infinite series is known as convergent series. If the limit of Sn-infinity, when n is infinity and define and finite, the series is convergent.

About duality in Linear Planning:- If a linear programming problem is maximizing type, then its dual is minimizing type. Both primal and dual have the same optimum value. The dual of a linear programming problem is the primal problem.

If the optimal solution to one problem is known, it is easy to fund the optimal solution to another. Duals are easier to solve than primals.
If maximizing linear programming problem is with "less than type constraints, the dual of this problem will have "more than type constraints.

For oil importing countries, the increase in oil prices in the 1970s and mid-2000s contributed to: Balance of trade deficits, price inflation and constrained economic growth.

The oil price shocks of the 1970s were particularly severe, with prices tripling and lasting for about five years. The United States responded to the oil embargo of 1973-1974 with measures such as:

• Creating the Strategic Petroleum Reserve.
• Imposing a national 55 mile per hour speed limit on highways.
• Imposing fuel economy standards.
• Proposing the creation of the International Energy Agency.

India's TRP is carried out every four years.
The TRP offers all opportunities to other WTO members to ask questions and raise conerns on different aspects of policies and practices of the country under review.

WTO has a mechanism for regular review of the trade policies of member countries.