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

The Independence of real variables from changes in money supply and nominal variables is called classical Dichotomy.

Important Point:- 
The classical dichotomy (Patinkin, 1965), refers to the idea that real variables, like output and employment, are independent of monetary variables. In this view, the primary function of money is to act as a lubricant for the efficient production & exchange of commodities.

The lump sum tax imposed on the monopolist can not be passed on to the consumers. Because lump sum tax may be a part of his fixed cost and it affects the marginal cost of production.

Hence both statement A & R are correct & R is the correct explanation of A.

1. Copenhagen Conference- The United Nations Climate change conference in Copenhagen was held in December 2009, and was 15th session of the Conference of Parties (COP 15) to the United Nations Framework Convention on Climate Change (UN FCCC). The conference took place at the Bella center in Copenhagen, Denmark from December 7-18, 2009.

2. Doha Conference- The UNFCCC was help in Doha Qatar from November 26 to December 8, 2012. The official name of the conference was COP18/CMP8.

3. Paris Conference-The UNFCCC Paris Agreement was adopted on December 12, 2015 at the UN Climate Change Conference (COP 21) in Paris, France. The agreement came into force on November 4, 2016.

4. Katowice Conference-The United Nations Climate Change Conference, also known as COP 24, was held in Katowice, Poland from December 2-15, 2018. The conference was the 24th Conference of the Paris to the United Nations Framework Convention on Climate Change (UNFCCC).

The HDI is the geometric mean of normalized indices for each of the three dimensions. The health dimension is assessed by life expectancy at birth, the education dimension is measured by means of years of schooling for adults aged 25 years and more and expected years of schooling for children of school entering age.

The Alagh Committee was formed in 1977 by the Planning Commission and submitted its report in 1979. The committee was led by Y.K. Alagh and was tasked with developing a poverty line for rural and Urban areas in India. The committee's approach was based on nutritional requirements and consumption costs.

2. The Lakdawala Committ was established in 1989 and submitted its report in July, 1993. The committee was chaired by Professor. D.T. Lakadawala and was an expert group tasked with looking into poverty estimation methodologies and redefining the poverty line if necessary.

3. Tendulkar was constituted in 2005 to review the methodology for the official estimation of poverty and recommend changes in the existing procedures. The Tendulkar Committee submitted its report in 2009.

4. The Rangarajan Committee was formed in 2012 by the Government of India to estimate poverty levels in the country. The committee was headed by former RBI Governor C. Rangrajan

Furthermore, the capital account also includes the flow of taxes, sales and purchases of fixed assets for a migrant moving in out of the country. The three major elements of the capital account are investments, foreign exchange reserves, and loans and borrowings.

Risk-averse people can use a variety of measures to minimize risk including.
1. Diversification: spreading investments across a variety of assets can reduce the risk of loss. If one investment fails, the investor can fall back on other investments.

2. Insurance: Transferring risk to an insurance company can help investors play it safe.

3. Gathering information: Before making an investment decision, investors can gather information about the risk event to help minimize risk and preserve capital.

4. Dividend stock: These stocks are considered safer than high-growth stocks because they pay cash dividends, which can help limit volatility.

5. Security: Installing security equipment like CCTV and locking mechanisms can help reduce the risk of theft, burglary, and arson. 6. Contingency plans- These plans can help deal with unwanted situations that can occur during a project development lifecycle.

The factor price equalization theorem is an economic theory that assumes several conditions, including:

Free trade: All countries follow a free trade policy. with no restrictions on trade, tariffs, quotas or transport costs.

Perfect competition: Markets are perfectly competitive, with no single buyer or seller having dominance or influence over prices.

Identical factors: Factors of production, such as labor and capital, are identical in quality and quantity across countries.

Factor immobility: Factors of production cannot be transferred between countries, even though goods can move freely across borders. Same technology: All countries use the same technology for production.

Same Commodity prices: All countries face the same commodity prices.

Two goods and two factors: There are two goods and two factors of production, such as labor & capital

Stable economic policies: Participating nations have stable economic and fiscal policies.

Constant returns to scale: Each region has constant returns to scale.
The factor price equalization theorem implies that free trade will equalize the wages of workers and the rents earned on capital across the world.