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

A country's balance of payments deficit can be improved by:
• Reducing imports: This can be done through imports controls.
• Increasing exports: Export promotion measures can help increase exports
• Devaluing the currency: This makes imports more expensive and exports cheaper, which can improve the balance of payments.
•Foreign exchange control: This involves rationing foreign exchange by the central bank, which limits the supply of foreign currency.
• Producing import substitutes: This can have a similar effect to increasing exports, but only if the production is competitive.
• Encouraging foreign investment: This can support export growth and the production of import substitutes.
• Selling official reserves: This involves the Reserve Bank Selling foreign exchange to correct the balance of payments shortfall.
• A country's balance of payments is based on the double-entry book keeping method, where each transaction has a debit and a credit entry. A deficit occurs when the value of the debit items is greater than the value of the credit items.

Under the Atmanirbhar Bharat Rozgar Yojana launched on 12 November 2020, establishments creating new employment will get subsidies for two years for the contribution of employers and employees to the retirement fund. On 9th December 2020 the Union Cabinet chaired by the Prime Minister gave its approval.

y = x³ - 12x² + 36x + 8
Solving this equation

Correct statements for environmental evaluation.
A. Travel cost method measures the recreational values of environmental resources.
B. Hedonic pricing is used for environmental amenities associated with property values.
C. Replacement cost method is used by substituting natural resources with a man-made equipment.
D. Defensive expenditure deals with preventive measures.

The correct match is as follows -

Correct statements about rational expectations model:
A. Monetary policy cannot affect output and employment.
C. There is equilibrium in the markets.
D. Economic agents use all relevant available information to form their expectations.

India has seen many structural changes in its agricultural and rural areas, including: 1. Crop diversification: New crops and cropping systems have been added to agricultural production.
2. Improved access to credit: The financial architecture has changed, making institutional credit more available through commercial banks, regional rural banks, and cooperatives.
3. Improved irrigation: Public investment has led to major and medium irrigation systems.
4. Improved prices and procurement policies: These have helped to regulate the marketing of agricultural produce.
5. Increased rural incomes: Poverty has been reduced, and income per hectare and per workers has improved.
6. Increased employment in farming: The Green Revolution led to greater employment in farming, both in absolute terms and as a fraction of total employment. 7. Shift to non-agricultural employment: some people have moved from agriculture to non-agricultural employment
8. Decline in agricultural employment for women: women's employment in agriculture has declined, while their education and domestic activities have increased. 9. Increasing division of labor: The division of labor within households and production sites has increased.
10. Women specializing in care giving: women are increasingly specializing in care giving and social reproduction.

The Phillips curve examines the relationship between the rate of unemployment and the rate of money wage changes. Known after the British economist A.
W. Phillips who first identified it, it expresses an inverse relationship between the rate of unemployment and the rate of increase in money, wages.
Note:-
The Phillips curve states that inflation and unemployment have an inverse relationship, higher inflation is associated with lower unemployment and vice versa.

Liquidity Adjustment Facility was recommended by Narasimham Committee
• A liquidity adjustment facility (LAF) is a monetary policy tool used in India by the Reserve Bank of India or RBI. The RBI introduced the LAF as part of the outcome of the Narasimham Committee on Banking Sector Reforms of 1998.