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Yogita Ingle 6 years, 1 month ago
Crawling Peg is a compromise between fixed exchange rate and flexible exchange rate. According to Crawling Peg system, a country specifies a parity value for its currency and allows small adjustment i.e. permits a small variation around that parity (such as ± 1% from the parity). There is a ceiling and floor limit so that it can provide some discipline on the part of monetary authorities.
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Posted by Kavita Rathore 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
1. With tariffs the Government receives the revenue whereas no revenue is received by the Government by applying non-tariff measures.
2. Non-tariff measures protect the procedures and make them feel more secure than under a tariff. But incentives are not there under tariffs.
3. In tariff customer’s classification and valuation procedures pose a problem before the customs authorities. Where-as under non-tariff measures no such problem arises.
4. Non-tariff barriers to trade induce the domestic producers to form monopolistic organisations with a view to keeping output low and prices high. This is not possible under import duty.
Posted by Kavita Rathore 6 years, 1 month ago
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Posted by Ritika Mehra 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
Adam Smith was an 18th-century Scottish economist, philosopher, and author who is considered the father of modern economics.
Posted by Pankaj Talwar 6 years, 1 month ago
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Yogita Ingle 6 years, 1 month ago
| Basis for Differentiation | Microeconomics | Macroeconomics |
|
Meaning |
Microeconomics studies the particular market segment of the economy | Macroeconomics studies the whole economy, that covers several market segments |
| Deals with? | Microeconomics deals with various issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc., | Macroeconomics deals with various issues like national income, distribution, employment, general price level, money, etc., |
| Business Application | Applied to internal issues | Environment and external issues |
| Scope | Covers several issues like demand, supply, factor pricing, product pricing, economic welfare, production, consumption, etc. | Covers several issues like distribution, national income, employment, money, general price level, etc., |
| Significance | Useful in regulating the prices of a product alongside the prices of factors of production (labour, land, entrepreneur, capital, etc) within the economy | Perpetuates firmness in the broad price level and solves the major issues of the economy like deflation, inflation, rising prices (reflation), unemployment and poverty as a whole |
| Limitations | It is based on impractical presuppositions, i.e. In microeconomics, it is presumed that there is full employment in the community which is not at all feasible | It has been scrutinized that Misconception of Composition’ incorporates, which sometimes fails to prove accurate because it is feasible that what is true for aggregate (comprehensive) may not be true for individuals too |
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Yogita Ingle 6 years, 1 month ago
Affluence means economic well being. Trap is something in which we get caught and we can not escape out of it. Affluence trap means environmental degradation trap. With affluence or economic well being more natural resources are used up causing environmental problems. In the rich countries of the developed world, the high level of consumption associated with the high level of income is using up natural resources at a fast pace; As a consequence, these countries are getting trapped into a situation of severe environmental degradation.
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Ritika Mehra 6 years, 1 month ago
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