NTA UGC NET/JRF Exam, June 2020 Economics

If no industry (sector) draws its own output as input, then the principal diagonal element in the technological coefficient matrix will be zero.

The Hawkins-Simon Condition for the viability of an economy. An economy in which the input requirements for production are directly proportional to the levels of production can be described by a set of linear equations.

Determinant (I -A) should be positive
Principal diagonal elements of matrix (I - A) should be positive.

In the study of interntional economics there is various concepts such as BOF, FDI, gains from trade, international relations between countries, etc, both at the micro of macro level.

Hence, both micro and macro economic theory but we all extend, adapt and integrate them.

The correct match is:-

Transportation costs increase the price of goods and services, which affects the pattern of trade. The higher the transportation costs, the higher the prices, and the lower the volume of trade.
Transportation cost of trade effect.
A. Pattern of trade
B. Boundaries between tradable and non-tradable goods.
C. Global supply chains.

The Marshall-Lerner (M - L) condition, which stipulates that a devaluation or depreciation of its currency will improve a country's trade balance only if the sum of the absolute value of a country's import and export price elasticities are greater than one, is a fundamental tenet of international economics and devalution makes exports cheaper and imports costly.

Forward exchange rates are useful for (A) Protect themselves from the risk that the exchange rate will change before a transaction is completed. (В) Gamble that a currency will rise in value. (C) Gamble that a currency will fall in value. (D) Exchange currencies at a point in time in the future.

Overshooting model of exchange rate developed by economist rudi dornbush, attempts to establish the relationship between sticky prices and volatile exchange rates.

They specialize and trade in agricultural goods rather than manufacturing goods, so change in terms of trade i.e.,if the price of any imported product increases, we can't afford to buy it or if we do not have to supply of agricultural goods, it will be a proven disadvantages to least developed countries.