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Introduction The theories of demand for money can be mainly divided into four parts. They are: 1. Monetary demand theory 2. Keynesian monetary demand theory 3 Keynesian and post-Keynesian monetary demand theories; 4. Friedman's theory of modern monetary demand. It can be said that Irving Fisher was the first to formulate the theory of traditional monetary demand. Later, this theory, with some modifications, was developed by Cambridge economists such as Alfred Marshall, A. C. Pigou, D. H. Robertson, etc. in the form of the Cambridge equation. Later, Keynes' Mahasaya was a critical critic of the traditional monetary demand theory and introduced an alternative monetary demand theory. This theory of Keynes can be found in Keynes' book "General Theory" published in 1936. .  Importance of monetary dem and To know the equilibrium level of the money market in an economy, it is essential to study money demand. Equilibrium between money demand and supply is called money ma...

 MCQS ON ECONOMICS Chater-1  A. Micro Economics 1. Principle of maximum social advantage is concerned with: a. Public expenditure b. Taxation only c. Public debt  d. Above a & b ✓ Ans: d 2. If marginal propensity to import is 0.1 and Marginal propensity to consume is 0.7, the value of income multiplier will be... a.<1 b. >1✓ c.=0 d=1 Ans: 1/{=1-(MPI+MPC)} From above question MPI=0.1, and MPC=0.7 1/{1-(0.1+0.7)} 1/1-0.8.                        1/0.2 10/2 5        Ans: b.  3. A toll tax is a tax based on which of the folowing: a. Horizontal equality  . The benifit principle✓ c. Vertical Equality d. Tax progressively  Ans: b  4.which of the following factors is Not the cause for Market Failure a. Public goods  b. Externality  c. Lack of  Demand ✓ d. Symmetric information  Ans: c  5. Liquidity approach is also known by the name:- a. Gurle...

  Deficit Financing Introduction: Local currency is an integral part of domestic monetary policy. When this seed is defined in the budget language of the Reserve Bank we are one stage (How Treasury Bills), the funds that fill the gap that is higher than the total expenditure of the government, the total revenue (including all types of income) is known as the deficit. Traditional economists and monetarists who advocate a balanced budget, while other modern economists and politicians condemn deficit financing. They associate deficit monetary policy with inflation, generally, deficit financing, as new currency is printed to the extent that the money supply increases. It is argued that blindly believing or misapplying the Quantity Theory of Money leads to deficit financing and inflationary pressures, so this basis is inappropriate for development seed collection. Logically, theoretically, and even upon proper historical data analysis, this argument is weak. Because an increase in money...

Effect of latent money on the economic and social system. Introduction: emergence of crypto-currency and its growth over time in circulation has adverse effects on the Indian economy in many ways.  So it is essential to analyse its effect. Effects of Latent Money   1. The direct impact of cryptocurrency is on the government exchequer.  Growth of black money tax evasion reduces government tax revenue.  The government has to levy more taxes to cover this.  Many people believe that this is the reason why the Regressive tax structure has developed in India.  Both black money and tax evasion are intertwined.  Both these together burden the righteous tax payer.  It leads to inequality of income and assets.  Black money helps tax evaders to increase luxury consumption.  D.K.  According to D.K. Rangnekar, while the incomes of taxpayers are falling, the incomes of tax evaders are increasing and luxury consumption is increasing, leading ...

Economic World : Problems faced by backward countries in implementa... :  Problems faced by backward countries in implementation of globalization policies  Many economists consider it unclear how far international...

  Development Indicator: Only GDP is not a Parameter India is currently the fifth largest economy in the world in terms of Gross Domestic Product (GDP). The International Monetary Fund (IMF) has confirmed that India has overtaken Britain and taken that status. Analysis has recently come to light that Germany, which is one step above India, will surpass Japan this year. India will become the third largest economy by the year 2030 after both Germany and Japan, S&P Global Market Intelligence's latest estimate says. There are rumors that India, which is a three and a half trillion dollar economy, will expand to 7.3 trillion dollars in the next seven years. By then, only America and China were ahead of India. This is a gratifying development, but on deeper analysis - different angles are revealed. On the basis of GDP growth rate, India seems to be creeping up the ladder. India is a lower middle income country in terms of GDP per capita. It is a stark truth that India, with a populat...

  My Bharat' to keep up with the changing times. Introduction : India is moving fast in the digital world.  The Center is launching a digital platform 'My Bharat' to keep up with the changing times.  The center hopes that this will stimulate and utilize the intellectual power and energy of the youth for the progress of the country.  It is believed to become a tool of coordinated action.  Governments should take all precautions to ensure that educated Indian youth plays a vital role in the international economic system.  Constructive measures should be taken under vision 2007 to bring the youth of villages, cities and small towns on a single platform.  In this process, the Center hopes that the My Bharat platform will help empower the youth to realize their dreams, share innovative ideas with each other and become drivers of development.  Apart from indigenous youth in the age group of 15-29 years who are classified as youth under the National Educ...

Price determination in perfectly Competitive Markets A perfectly competitive market is rare in the modern world. It can be said that this is not the case in the industrial sector. Similarly, a monopolistic market is rare in the private sector. Markets between these two are widely prevalent. Monogamous power exists in all these in varying degrees. It results in misuse of resources. Marginal cost pricing method is followed in public sector organisations to prevent such misuse of resources. Only short- run marginal cost considerations come into play. The net social benefit is maximised. Because many industries have credit exposures, marginal costs of exposure are subsumed under social marginal costs. If that happens, over production will be reduced and social benefit will be achieved. In industries that follow the marginal cost pricing system, long- run costs are declining and they incur losses. Burying them is difficult. Marginal cost measurement is complicated. Full cost pricing approac...

  Average marginal cost theory Ex' A farmer who produces 1000 quintals of excess grain in a year is spending 100000 rupees more. In such a case, how much should the farmer sell quintals of grain? Ans: AIC= dTC/dQ               = dTC= 1000000               = dQ. = 1000 Q= Quantity  TC= Total Cost 100000/1000 100 Cost of 1 quintal grain= Rs.1000