Professional Documents
Culture Documents
1.suggest two measures through which the government can regulate the subsidy
given to the farmers for electricity. (3)
Deficit budget is the suitable one for the emerging economies, as they have
to achieve maximum social welfare through lots of developmental projects.
Govt. has to borrow and inject more capital to generate employment. Because,
the revenue receipts will be less.
Value:social welfare.
3.What would you suggest to improve the rate of growth of real income of the
weaker sections of the society in an emerging economy like India?
2.RBI raises LRR when the country is suffering through inflation. How vital
a tool can it be in this situation?
LRR-it is the rate at which commercial banks maintains their reserve against
the deposits.Their lending capacity is reduced when LRR is raised and
credit money in circulation is checked to control the inflation. Crdits become
costlier.
Value:critical thinking.
3.70% crude oil in India is imported. Increase in oil price has played cascading
effect on cost of production of all goods and prices have gone up several times.
Suggest measures to reduce the import of oil.
4.A part of population prefers to work even though suitable work is available to
them. What values are affected under such situation?
2. promotion of tourism in India would attract more foreign exchange- do you agree?
Yes, it will attract more foreigners to visit India and brings in more exchange.
Moreover, it will help to promote cultural exchange and values and international
Understanding.
Political instability may lead to large capital outflows and reduce the inflow
Of foreign funds, thus leads to disequilibrium in the BOP.