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Supply of Basic Industrial Inputs:
Allowing their duty-free imports by exporters would require an elaborate machinery of customs and import licensing to ensure that the imports did not leak out into the domestic economy. Even now the machinery which allows limited export-related imports, does not function very satisfactorily. To extend it to manage large-scale imports of basic goods is not possible. Besides, there are inputs which cannot be imported. There are indirect inputs for which it would be impossible to work out any import our exporters to compete fairly with their counterparts abroad is to ensure that these basic goods are available to everyone?exporters, potential exporters and non-exporters?at international prices. There is another issue that needs resolution: rupee lending rates. Obvious comparisons crop up with foreign currency financing. However, while foreign currency loans are available at a spread over London, Inter-Bank Offered Rate (LIBOR) and US Treasury (UST) rate, the rupee funds will come only as a spread on Prime Lending Rates (PLR).
Another school of thought developed what is called loanable funds theory of interest. Among the principle economists who contributed to the development of loanable funds theory men
How much would the price of Good Z (Pz) have to change in order to increase the consumption of Good C by twenty five percent (25%)?
suppose the production function is given as:X=b0Lb1Kb2,where b0=level of technology find marginal product of factors(MPL0and MPK) find factor intensity
Explain how diminishing returns differ from diminishing returns to scale. The answer should clearly distinguish among SR (one or more factors are fixed) and LR (where all facto
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when does a buisness reach shutdown point
conditions of pareto optimality
Use a graphical illustration to describe briefly what the influence of each of the following would be on the market supply of labor:(a) an increase in immigration (b) more women en
REAL BUSINESS CYCLE THEORY: The parable that motivates this discussion originated with Edmund Phelps and invites you to think that all men (and women) are islands. They have p
Use a PPF to explain the trade-offs that all economies face. All countries must construct some sort of system whereby output, allocation and distribution of goods is decided.
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