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Ask QuestionPosted by Prabhav Upadhyay 6 years, 5 months ago
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Posted by Aditi Mittal 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
Yogita Ingle 6 years, 5 months ago
Following are the limitations of using GDP as an index of welfare of a country:
(i) With every increase in the level of GDP, distribution of GDP is getting more unequal, welfare level of the society may not rise.
(ii) Composition of GDP may not be welfare oriented even when the level of GDP tends to rise. i.e. rise in GDP may be concentrated in few hands.
(iii) Because of non-monetary transactions, GDP remains under estimated and therefore, there is no proper index of welfare.
(iv) Impact of externalities (positive or negative impact of an activity) is not accounted in the index of social welfare in terms of GDP.
Posted by D J 6 years, 5 months ago
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Posted by Sanjok Gurung 6 years, 5 months ago
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Anubhuti Srivastava 6 years, 5 months ago
Sia ? 6 years, 5 months ago
Globalisation means the flows of ideas, capital, commodities and people across different parts of the world. It is a multidimensional concept. It has political, economic and cultural manifestations and these must be adequately distinguished. In simple words, Globalisation means integrating our economy with the world economy.
Posted by Tushar Juneja 6 years, 5 months ago
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Sia ? 6 years, 5 months ago
The Bengal famine of 1943 was a major famine of the Bengal province in British India during World War II. An estimated 2.1–3 million,out of a population of 60.3 million, died of starvation, or of malaria and other diseases aggravated by malnutrition, population displacement, unsanitary conditions and lack of health care. Millions were impoverished as the crisis overwhelmed large segments of the economy and social fabric. Historians have frequently characterised the famine as "man-made", due to the fact that the Bengal famine was a "war famine" that occurred in the context of World War II. A minority view holds that the famine arose from natural causes despite the fact that there were major natural disasters during the famine.
Posted by Khushi Kumari 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
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Sia ? 4 years, 5 months ago
Posted by Rohit Raj 6 years, 5 months ago
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Mohammad Sahil 6 years, 5 months ago
Posted by Ranjit Kumar 6 years, 5 months ago
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Yogita Ingle 6 years, 5 months ago
The total stock of money in circulation among the public at a particular point of time is called money supply. Money supply is a stock variable. RBI publishes figures for four alternative measures of money supply, viz, {tex}M_1,M_2,M_3{/tex} and {tex}M_4.{/tex}
They are defined as, {tex}M_1{/tex} = CU + DD
Where, CU is Currency (notes plus coins) held by the public and DD is net Demand Deposits held by commercial banks. The word ‘net’ implies that only deposits of the public held by the banks are to be included in money supply. The inter bank deposits, which a commercial bank holds in other commercial banks, are not to be regarded as part of money supply.
{tex}M_2 = M_1{/tex}+ Savings deposits with post office savings banks
{tex}M_3 = M_1{/tex}+ Net time deposits of commercial banks
{tex}M_4 = M_3{/tex} + Total deposits with post office savings organisations (excluding National Savings Certificates)
Posted by Kajal Chauhan 6 years, 5 months ago
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Yogita Ingle 6 years, 5 months ago
Excess of money supply will lead to an increase in general price level prevailing in the economy (or inflation) because the production of goods and services will remain the same. This increase in general price level will lead to an increase in interest rates on investment expenditures resulting in a fall in investment activities in the economy. Hence, economic growth will be adversely affected by such inflationary pressures.
Posted by Neeshu Pandey 6 years, 5 months ago
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Posted by Sandeep Sandhu 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
Yogita Ingle 6 years, 5 months ago
Demand deposits are the deposits which can be withdrawn on demand at any point of time. Also these are chequable deposits, i.e. cheques can be drawn against such deposits.
On the other hand, time deposits are the deposits which cannot be withdrawn before a specified period of time. These deposits are non-chequable, i.e. one cannot draw cheques against such deposits.
It includes:
(i) Fixed deposits
(ii) Recurring deposits
Ramesh Dhaka 6 years, 5 months ago
Posted by Manpreet Kaur 6 years, 5 months ago
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Posted by Yatin Sharma 6 years, 5 months ago
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Atwal Jasveer Singh 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
Posted by Jayant Kumar 6 years, 5 months ago
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Posted by Apoorva Khandwe 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
Posted by Gurdeep Chauhan 6 years, 5 months ago
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Yogita Ingle 6 years, 5 months ago
Circular flow of income refers to the unending flow of activities such as production, income generation and expenditure involved in all the sectors of the economy.
Three Phases of Circular Flow
The flows of production, income and expenditure form circularity with no end and beginning. Thus it is called circular flow. Production aspect states the flow of goods and services in the economy or the process of value adding. Income or distribution aspect states the distribution of income in terms of wage, rent, interest and profit. Expenditure or disposition aspect states the disposal of income in terms of consumption expenditure or investment expenditure.
Two-Sector Economy without Financial Market
In a simple economy, there are firms and household sectors economic activity. People from households render factor services to firms and firms hire factor services from households. Households spend their earned income completely on consumption. Products which are produced by firms are sold to consumers. Assume that there is no external trade and government in an economy. Total production of goods and services by firms are equal to the consumption of goods and services by households. Factor payments by firms are equal to the factor incomes of the household sector. Consumption expenditure of household sector is equal to income of the household sector. Money flows are opposite to real flows because factor services flows from households to firms are real flows and the factor payments made by firms to households are money flows.
Posted by Priyanshu Bhardwaj 6 years, 5 months ago
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Nagasaki Ali 6 years, 5 months ago
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