NTA UGC NET/JRF Exam, Dec. 2020/June 2021 Economics

The super multiplier is an economic concept that describes the interaction between the multiplier and the accelerator

• The super multiplier is a way to explain how changes in investment spending can impact economic growth and output levels

• The super multiplier process begins with an increase in spending, which leads to a larger increase in output and further increases in investment spending.
This process is super cumulative, meaning that each successive level is magnified by the interaction of income and investment.

1 $ = Rs 72 to 1 $ = Rs 68 then the Dollar has depreciated and Rupees has appreciated.

Currency depreciation, in the context of the U.S. dollar, refers to the decline in value of the dollar relative to another currency.

Easy monetary policy by the fed can weaken the dollar when investment capital flees the U.S. as investor search elsewhere for higher yield. Now for rupees appreciated in this case; 1 $ = 72/-
so the value of Rs increased i.e. rupees appreciated.

Harrod-neutral technical progress is necessarily labor-augmenting.

• Harrod-neutral technical progress is a type of technological advancement that increases the efficiency of labor without changing the capital-labor ratio.

• Harrod-neutral technical progress is labor-augmenting because it increases the efficiency of labor, which means that the labor force in efficiency units increases faster than the number of workers available.

• Harrod-neutral technical progress implies that output per worker rises while the capital output ratio remains constant

The profit maximizing producer has no incentive to produce it, he is unable to exclude people from consuming it and so can not pass on the price.

Zero-based budgeting (ZBB) emphasizes a number of things, including:
1. Starting from scratch: ZBB involves starting from scratch each year, rather than adjusting previous budgets.

2. Justifying expenses: ZBB requires a justification for all expenses, both old and new.

3. Cost-benefit analysis: ZBB emphasizes allocating resources based on cost benefit analysis.

4. Decision-making: ZBB involves employees and places emphasis on decision-making and clarity.

5. Optimizing costs: ZBB aims to optimize costs, not just revenue.
ZBB is a strategic budgeting approach that can help companies identify and eliminate unnecessary costs, keep control of spending, and focus on high-profit initiatives.

Factor can reduce a commercial bank's ability to create credit, including:

1. Declining borrowers→ When borrowers are unable to repay their loans, it can lead to a decline in the quality of the bank's loan portfolio and increased credit risk.
2. Liquidity risk:- If many depositors request their funds simultaneously, banks may not have enough reserves to meet the demand. This can lead to a financial crisis.
3. Interest rate risk- Changes in interest rates can affect a bank's profitability by altering its borrowing costs.
4. Leakages.
5. Shortage of securities.
6. Credit rationing
7. Cash-on-hand limitations.
8. Control through directives.

The movement from an older level of expenditure and taxation to a new and higher level is called the displacement effect. This happens when a government increases taxes and public expenditure to deal with a social disturbance, such as war.

In the given question probability of male birth is 0.5 In the given question we have to find that a family of 3 children having two boys and one girl.
All Possible outcomes

No. of total outcome is 8
& No. of favourable condition 3.
⇒ Probability of having two boys & one girl. = 3/8

New capital accumulation is the carrier of technology, because technical porgress is embodied in new machines. Hence, both statement A & R are correct and R is correct explanation of A.