UGC NTA NET/JRF Exam, June-2023 Economics (Shift-I)

Price of good-1 (Biscuit) = 2rs/each
Price of good-2 (Copy) = 1rs/each

Budget set - Income spend on good x and income must not exceed the money income.

Prevention of Money Laundering Act, 2002 is an Act of the Parliament of India enacted by the Indian Government to prevent money laundering and to provide for confiscation of property derived from money laundering.
PMLA and the Rules notified thereunder come into force with effect from 1July 2005.

300 = 2Y – 1.5i
300 +1.5i = 2Y
Y = 150 + 1.5i/2
(2) i = 150-y
y = 150-i
(3)  y = 100-i
(4) i = (150-2y)/2
2i = 150-2y
2y = 150- 2i
y = 75-i
LM curve
y = a + bi
So, option (1) 300 = 2y - 1.5i
y = 150+1.5i/2 is correct equation representing the money market.

Following that hold's for Bertrand's Duopoly Imodel are.
(1) The reaction curves are derived from isoprofit maps which are convex to the axes.
(2) The point of interaction of the two reaction.

Note:-The Bertrand duopoly model is an economic model that describes how two firms compete by setting prices instead of production quantities. The model assumes that consumers will choose the lower-priced product if given two options of equal quality. This leads to a price was between the two firms to gain market share.

Properties of expenditure functions are (in context of utility theory).
(A) Homogeneous of degree one in price P.
(B) Strictly increasing in utility U and non-decreasing in Price P for any goods (one).
(C) Concave in P.
(D) Continuous in P and U.
Note:-Some properties of the expenditure function:
(1) Non-decreasing : The expenditure function is nondecreasing in price.
(2) Homogeneous of degree 1: The expenditure function is homogeneous of degree 1 in price.
(3) Concave: The expenditure function is concave in price.
(4) Continuous : The expenditure function is continuous in price for p >> 0.

(a) : The Intensive Agriculture District Programme (IADP) was launched in the year 1960-61 & four districts in 1962-63 and IADP popularly known as package programme.
The seven districts were:-
1. Thanjavur (Tamil Nadu)
2. West godavari (Andhra Pradesh)
3. Shahabad (Bihar)
4. Raipur (Madhya Pradesh)
5. Aligarh (Uttar Pradesh)
6. Ludhiana (Punjab)
7. Pali (Rajasthan).

A random walk without drift is a time series where the mean value are constant, and the line is horizontal. The random walk model is expressed as xf = bo + b1 xt - 1 + Et, where bo = o for a random walk without drift.

Here are some other characteristic of a random walk without drift.
(1)Variance - The variance value are not constant but vary with time.
(2) Standard error- The standard error of the 1-step ahead forecast is the root-mean-squared -value of the period-to-period change in the data sample.
(3) Stationary :- A random walk model without drift is a difference stationary process.
Note- In contrast, a random walk with drift has a nonzero slope. The drift is equal to δ when δ ≠0.

(1) First Degree price Discrimination. Also known as perfect price discrimination, first degree price discrimination involves charging consumers the maximum price that they are willing to pay for a good or service. Here, consumer surplus is entirely captured by the firm.

(2). Third-degree price discrimination is aa pricing strategy where a company charges different prices to different groups of consumers. It is also known as group pricing. Marginal condition for efficiency in the allocation of factors among commodities efficiency in product mix (MRS = MRT).

Notes:- The Second Theorem of welfare economics states that in a perfectly competitive market, any pareto efficient allocation (a point where no one can be made better off without making someone else worse off ) can be achieved through a suitable redistribution of initial endowments, meaning that the government can reach any desired pareto optimal outcome by adjusting initial wealth distribution through lump-sum taxes and transfers, while still allowing the market to operate freely, essentially, the market mechanism can achieve any efficient allocation the initial distribution of wealth is adjusted appropriately.

2nd theorem of welfare economics holds when there are constant returns to scale & decreasing rate to scale.

Arrangement of states in ascending order based on loans from the central government for the year 2020-21