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

The efficiency condition in the production of pure public good requires that the production be carried out up to a point when:
where MBi represents marginal Benefit of the iᵗʰ individual and MBj represents marginal Benefits that accrue to the jᵗʰ individual and MC is the marginal cost

Net Barter Terms of Trade also called commodity Terms of Trade is defined as a ratio of export prices to import prices.

In symbolic terms : Tn = Px/Pm
Where; Tn stands for net barter terms of trade. Px stands for price of exports (x). Pm stands for price of imports (m).

1. PQLI–The Physical Quality of Life Index (PQLI) was developed in the mid 1970s by Economist Morris David Morris and his colleagues at the US Overseas Development Council. The PQLI was created as an attempt to measure a country's quality of life or well-being. The PQLI is based on three indicators: Life Expectancy Rate (LEI), Infant Mortality Rate (IMI), and Basic Literarcy Rate (BLI).

2. HDI-The United Nations Development Programme (UNDP) lauched the Human Development Index (HDI) in 1990. The HDI is a composite index that measures a country's development by considering multiple dimensions, such as life expectancy, education, and income.

3. MPI-The Multidimensional Poverty Index (MPI) was| developed in 2010 by the Oxford Poverty and Human Development Initiative (OPHI) and the United Nations Development Initiative (OPHI) and the United Nations Development Programme (UNDP). The MPI was first used in the UNDP's Human Development Report.

The MPI was indicators of health, education and standard of living to measure the depth and extent of poverty in a population.

4. SDGs-On 1 January 2016, the 17 Sustainable Development Goals (SDGs) of the 2030 Agenda for sustainable development-adopted by world leaders in September, 2015 at an historic UN Summit-Officially came into force.

(A). Yes, according to the accelerator theory, investment demand is proportional to changes in income

Explanation:- The accelerator theory, also known as the acceleration principle or the accelerator effect, states that when national income increases, so does capital investment spending.

This is because companies tend to invest more when demand increases, and an increase in income usually lincrease demand.

Application- The accelerator theory helps guide policy, such as helping governments decide whether to stimulate demand or spur business expansion.

(B). The higher the real interest rate, the higher is the rental cost of capital

The rental cost of capital is the implicit price that the firm charges itself for the assets that it owns, and it is proportional to the price that it would have to pay to rent an equivalent asset in a competitive market.
(C). Investment is not a stock variable as its value is accumulated over time.
(D). The real rate of interest is equal to the nominal rate of interest plus the inflation rate, It states that the nominal interest rate is approximately equal to the interest rate plus the inflation rate (i = R).
Note hence statement A & B are correct & statement C&D are wrong.

Introduction of following taxes in India in chronological order.

1. Income Tax-The first income-tax act was introduced in February 1860 by Sir James Wilson (British India's first finance minister).

2. Gift Tax-The government introduced gift tax in April, 1958 regulated by Gift Tax Act, 1958 (The GTA) with an objective to impose taxes on giving and receiving gifts under certain specific circumstances.

3. Service Tax-Service Tax was imposed in 1994 for the first time on telephone services.

4. Banking Transaction-It was first levied in 2005 and then rolled bank in 2009.

5. Goods and services tax-The government proposes to introduce GST with effect from 1st July, 2017. It replaced by many indirect taxes in India such as excise duty, VAT, services tax etc.

An assumption under the OLS method is that the regression model is linear in the parameters though it may not be linear in the variable, statement I is correct & statement II is incorrect.

Aggregate Demand
AD = C+I+ G+ (X-M)   -----(i)
Aggregate supply.
AS = C+S i.e. Y = C +S   ----- (ii)
at equilibrium level
AD = AS
⇒C+I+G = C + S— (ii)
So,
I+G = S—(iv)
I = 50 + 0.2Y (given)
S = -150 + 0.4Y (given)
G = 50 (given)
By putting Values in equation (iv)
we will get,
50 + 0.2Y + 50  =  -150 + 0.4Y
100 + 150 = 0.4Y - 0.2Y.
250 = 0.2Y
250/0.2 = Y
Y = 1250

A sudden shift from import tariffs to free trade will have the maximum impact on short term unemployment in import competing industries.

Some features of matrices:-
1. Compatibility: For matrix products, the number of columns in the first matrix must equal the number of rows in the second matrix.

2. Identity matrix- A square matrix with a diagonal of Is and all other elements as Os (zero) is known as an identity matrix. Its used for matrix multiplication and finding inverses.

3. Addition and subtraction:- Matrices can be added and subtracted in the same way as numbers, but the matrices must be the same size.

4. Commutative property: The addition of two matrices is commutative, but the multiplication of two matrices is not.

5. Distributive property: The distributive property applies when a matrix is multiplied by a scalar and then combined with another arithmetic operation.

6. Sum property- The sum of a matrix's diagonal elements is called the trace or character of the matrix.

7. Linear algebra:- matrices are a key component of linear algebra, a branch of mathematics that's useful for solving system of linear equations.

8. Other features of matrices include: Scalar multiplication, symmetric matrices rectangular matrices Diagonal matrices, Null matrices, and zero matrices.

Chronological Order-